Case Study
Somalia
Associated commodity
Associated crime
Source
Gold smuggling and tax evasions used by militant groups in Somalia to fund their insurgency

According to the Horn Observer, the increasing artisanal gold mining in the Golis mountains of northeastern Somalia has become a significant target for taxation by militant groups Al Shabaab and Islamic State. The village of Milxo is notably at the centre of this activity. Gold mining in Milxo involves two main practices, surface mining and deep cast mining. Both lack proper permits and safety measures, leading to frequent accidents. The gold mining operations produce an estimated 300 kg of gold annually, worth about $1.5 million, which is mostly smuggled to the UAE to avoid taxes. Al Shabaab has aggressively campaigned to control this lucrative trade, imposing a taxation scheme on miners and buyers, despite the presence of Puntland and international counterterrorism forces. The group's ability to leverage the rough terrain, financial constraints of local governments, and unregulated mining activities enhances their operational capabilities. This poses a threat to international stability and maritime traffic. The ongoing conflict and lack of effective governance in the area have overall allowed Al Shabaab to exploit the gold trade, funding their insurgency.

Keywords
Timber Trafficking, Illegal Logging, Cocobolo Wood, Corruption, Panama, Colombia