This presentation by CIIGSA was given at the session on Colombian outreach efforts during the 7th Multi-Stakeholder Forum on Responsible Mineral Supply Chains held on 26-28 May 2014 in Paris. Find out more at: http://mneguidelines.oecd.org/icglr-oecd-un-forum-paris-may-2014.htm

1. FORMALIZED GOLD TRADING IN
COLOMBIA
-ASPECTS TO BE CONSIDERED-

2. FORMALIZED GOLD TRADING IN COLOMBIA
 We use the standard system of BASC (Business Alliance for Secure Commerce), we are
migrating to OEA (Operador Economico Autorizado) as the basis for the due diligence of
our suppliers.
 Prevention of Money Laundering and Terrorism Financing
 We must apply in their selection process and evaluation of Business Partners, and new
partners (shareholders), containing criteria for prevention against money laundering and
terrorist financing such as:
 a) Know your customer (KYC) of Business Partners (Identity and legality of the company
and its partners)
 b) Legal history, criminal, financial.
 c) Monitoring of operations (economic activity, their income source characteristics of its
operations other clients, enforcing contracts, antique market)
 d) Report to the appropriate authorities when identifying suspicious transactions.

3. FORMALIZED GOLD TRADING IN COLOMBIA
 Must include at least the following factors for the identification of suspicious
transactions:
 a) Origin and destination for international trade
 b) Frequency of operations
 c) Value and type of goods
 d) Transportation
 e) Payment form
 f) Inconsistencies in the information provided.
 g) Requirements that are not normal and post established

4. FORMALIZED GOLD TRADING IN COLOMBIA
 Differentiation between informal mining, illegal mining and mining financed by armed groups.
 The traceability of the mining material is important, but it is even more important the verification
of the good origin of such material.
 Promote the development of small-scale miners associations in order to organize and legalize
them; this helps to avoid royalty evasion and allows the tax payer’s base to grow. Also, promote
the establishment of small processing plants, where small miners can optimize their operation and
decrease environmental pollution (eradication of mercury).
 Offer incentives to large mining companies so they can provide technical assistance to small
miners; this will improve the sector’s growth.

5. FORMALIZED GOLD TRADING IN COLOMBIA
 Using VUCE (Single Window for Foreign Trade) as a tool for information and control. All
information from exporting companies and miners are recorded there. Every time a
company exports precious metals, must obtain prior to boarding an approval from Agencia
Nacional de Minería stating that royalties from this shipment were duly recorded in the
government accounts. In order to obtain such approval specific information is requested:
tariff heading, quantities (fine and gross grams), measurement, FOB value, port of shipment,
country of destination, product name, royalties value with all supporting documents, and
further requests append detailed list of whom the company purchased the material from.
 Follow up and comply with Act 1450 of 2011. Importantly Article 112 where it is required
for gold collectors to buy only from miners who demonstrate mining title in exploitation
stage and who have the required environmental licenses. Here Agencia Nacional de Minería
needs to publish a lists of the miners that meet these specifications. In the meantime, the
information can be verify via Colombian mining registry (Catastro Minero Colombiano).
 Since the percentage of legal mining in Colombia increase up to 40%, by imposing the
measures given by government to legalize all miners, there is high probability that the ilegal
gold will be send out of the country, due to the fact that gold collectors won’t be able to
purchase it.

6. THANKS
CIIGSA
Gerencia General
Jaime Ignacio Gutiérrez Bernal
Carrera 48 No. 16-24 Medellín, Colombia.
Tel.: (574) 3525155 Fax: (574) 3119556
gerencia@ciigsa.com