Ecuador targets illegal gold trade to disrupt criminal financing networks

Ecuadorian authorities are intensifying operations against illegal gold mining to dismantle the financial networks supporting transnational organized crime.

The Pan American Development Foundation reports that illegal gold mining is the second most profitable illicit market in Ecuador, generating nearly $1.3 billion in annual profits. This economy has expanded since 2020 and provides criminal groups with resources for weapons purchases, logistics, and money laundering.

Criminal organizations like Los Lobos use these networks to move gold from extraction sites to processing plants and eventually to export markets. Between January and August 2026, the Ecuadorian Armed Forces destroyed 1,101 mining camps and 1,680 mine entrances. These military actions also disabled hundreds of pieces of heavy machinery, including excavators and dredges, and recovered over 53,000 sacks of gold-bearing material. Officials note that while destroying infrastructure is important, the most profitable stage of the business is commercialization.

To counter this, the Attorney General’s Office and financial units are using drone surveillance and transaction tracking to identify financiers and buyers who help integrate illegal gold into formal markets. Ecuador is also pursuing regional cooperation to address the cross-border nature of these crimes. The government strengthened security agendas with Peru and engaged in talks with Colombia to establish a binational base to combat narcotrafficking and illegal mining. Additionally, the U.S.

Homeland Security Investigations joined forces with several South American nations to share intelligence on money laundering and digital evidence. These combined efforts aim to break the full supply chain of the gold trade rather than just targeting the physical extraction sites.