Peru’s Counter-Memorial: A Strong Defense Against Money Laundering and Illegal Mining

Introduction

The Peruvian government has taken decisive action against shipments of gold suspected of being the product of illegal mining and money laundering. In response to these measures, the claimant Kaloti Metals & Logistics, LLC contests Peru’s regulatory actions, claiming ownership of the gold. However, as this counter-memorial will demonstrate, Peru’s actions were lawful and in accordance with its legal framework and international public policy.

Peru’s Legitimate Actions

Peru’s administrative and judicial authorities properly exercised their powers to order immobilizations and issue interlocutory measures against five specific shipments of gold. These actions were taken in response to legitimate concerns about the origin of the gold, which is a critical aspect of ensuring that gold is mined responsibly and without contributing to illegal activities.

The Global Scourge of Money Laundering and Illegal Mining

Money laundering and illegal mining are significant global problems that affect many countries. In the gold sector, these issues are particularly pressing due to the lucrative nature of gold and its relative ease of transportation. According to a book titled “Dirty Gold”, Colombia alone generates $2.4 billion annually in criminal cash from illicit mining.

Pernicious Effects of Illegal Mining

The consequences of illegal mining are far-reaching and devastating. Environmental damage, health risks, and links to other crimes such as racketeering, child labor, and tax evasion are just a few examples of the problems caused by this industry. Organized crime is also behind the illegal gold mining underworld in Peru, further exacerbating these issues.

Environmental Impact

The environmental impact of illegal mining is severe. Mercury contamination from illicit mining has resulted in the ingestion of unsafe levels of mercury by an estimated 50,000 people. This highlights the need for robust regulations and enforcement to prevent such harm.

In conclusion, this counter-memorial demonstrates that Peru’s actions were lawful and necessary to address the serious issues of money laundering and illegal mining in the gold sector. The global nature of these problems and their devastating consequences for societies and the environment underscore the importance of international cooperation and responsible practices in the gold industry.