A report by OriginAll has said, officially, gold worth at least USD 22.8 and 23.45 billion leaves Africa and Latin America every year.

However, it is estimated that 55 to 60 per cent of the gold mined on the two continents is considered illegal.

Local gold refineries, according to the report, are being "extensively used to launder gold from illicit sources in an artisanal mining sector involving several million people, forced labour, and high risks".

Illicit gold mining is "becoming a rising source of income for cartels, criminal gangs, and non-state armed groups, with the mineral sector averaging 17 per cent of global threat and conflict finance, compared to drugs at 28 per cent", the report said.

It noted that capital flight from the African minerals sector has been estimated at USD 50 billion at least – with a total range of USD 24 to 61 billion – compared to illicit oil exports of USD 7.65 to 37.5 billion.

Also, it said illicit annual exports from extractive industries in Africa account for at least USD 31 to 98 billion, compared to USD 32 to 62 billion from Latin America, with companies typically paying only 0 to 4 percent tax on official amounts.

The illicit trade in precious materials, according to the report, plays a particular role in obstructing conflict resolution.

It said a "significant amount of gold is smuggled from the eastern DRC to neighboring countries such as Uganda, Rwanda, and Burundi, and then onto international markets".

This illegal gold trade is primarily driven by artisanal and small-scale miners operating in the DRC, often under dangerous conditions and with little or no government oversight, the report revealed.

It said militia groups and criminal networks exploit this situation to control the gold supply and fund their activities through illegal taxation, extortion, and violence.

"The smuggled gold eventually makes its way into the global market, where it can end up in the supply chains of major companies".

"This creates challenges for organisations that are trying to ensure their supply chains are free from conflict minerals and other illicit goods", it added.

While efforts have been made to combat the illegal gold trade in the DRC, including certification schemes and traceability systems, these initiatives have had limited success in curbing the problem, the report observed.

It said a lack of government oversight, corruption, and the involvement of various armed groups continue to contribute to the persistence of this issue.

It pointed out that though timber may appear to be less precious than gold at first glance, illegal logging, is, in fact, “the largest, least risky, and most profitable illicit environmental industry,” with 15% to 30% of the global timber trade being illegal rising to 50% to 90% of the trade from tropical countries.

"In addition to funding organised crime, illegal deforestation compounds environmental degradation and climate change, threatening human security in affected areas and potentially triggering further conflicts down the line".

"Illicit trade does not stop at near-extinct species, either: The illegal wildlife trade is worth as much as USD 23 billion annually and is increasingly linked by investigators to financial crime and money laundering", it added.