US Treasury Targets Gasabo Gold Refinery in Major Sanctions Action

The United States Department of the Treasury’s Office of Foreign Assets Control announced sanctions on June 25, 2026, against Gasabo Gold Refinery LTD, a major gold processing facility in Kigali, Rwanda, along with its chairman Jean Malic Kalima and general manager Bosco Kayobotsi. The action also covers three additional Rwandan mining companies controlled by Kalima: Bugambira Mines LTD, Wolfram Mining and Processing LTD, and Rwinkwavu Mining Corporation LTD. Officials cited the entities’ role in smuggling gold and other conflict minerals from eastern Democratic Republic of the Congo to finance the Rwanda-backed March 23 Movement armed group.

Background on the Eastern DRC Conflict and Mineral Trade

Eastern Democratic Republic of the Congo has long been plagued by armed conflict fueled in part by the illicit extraction and trade of valuable minerals including gold, coltan, tin, and tungsten. Armed groups such as the March 23 Movement, known as M23, have seized control of key mining areas in North and South Kivu provinces. These groups impose illegal taxes on miners, control production sites, and smuggle output across borders, generating revenue used to purchase weapons and sustain operations. A mine shaft collapse at the M23-controlled Rubaya coltan mine in March 2026 killed more than 200 people, highlighting the dangerous conditions tied to these activities.

The minerals ultimately enter global supply chains, reaching refineries and manufacturers in Asia, Europe, and North America. Responsible sourcing has become a priority for governments and companies seeking to avoid contributing to violence or human rights abuses such as forced labor, child labor, and sexual violence in mining communities.

Details of the June 2026 Sanctions Designations

According to the Treasury Department, Gasabo Gold Refinery has served as a key partner in a minerals laundering scheme since M23 took control of provincial capitals. Gold extracted from M23- and Rwanda Defence Force-occupied areas in South Kivu is transported under strict oversight to Rusizi District in Rwanda, just across the border from Bukavu in the DRC. From there, it moves by ground or air to the refinery in Kigali. Refinery personnel then begin processing upon receipt. In early 2026 alone, at least 60 kilograms of gold—representing millions of dollars in value—moved through this channel.

The European Union had previously designated Gasabo Gold for its involvement in transporting illegally extracted gold from the DRC. The new U.S. designations fall under Executive Order 13413, as amended, which targets persons involved in activities that threaten peace, security, or stability in the DRC through the illicit trade in natural resources.

Statements from U.S. Officials

Treasury Secretary Scott Bessent stated that the United States will not allow rogue groups to profit from the illicit mineral trade and destabilize the region. He emphasized that the Democratic Republic of the Congo’s mineral wealth rightfully belongs to the Congolese people and that the administration will continue decisive action against those enabling violence and exploitation.

The State Department highlighted that today’s measures support implementation of the Washington Accords for Peace and Prosperity, signed December 4, 2025, by the leaders of the DRC and Rwanda under U.S. brokerage. The accords include a Regional Economic Integration Framework aimed at expanding trade, strengthening transparency in critical minerals supply chains, and fostering long-term economic opportunity.

Photo by Glen Carrie on Unsplash

Previous U.S. Actions Against DRC Conflict Networks

This sanctions round builds on earlier measures. In August 2025, Treasury targeted networks linked to illegal mining in the DRC. March 2026 saw sanctions on the Rwanda Defence Force for supporting M23 operations. Additional designations occurred in April and June 2026. These steps reflect ongoing efforts to disrupt financing for armed groups while encouraging legitimate investment and due diligence across supply chains.

Implications for Rwanda, the DRC, and Global Markets

The designations block all property and interests in property of the named entities and individuals that are in the United States or under the control of U.S. persons. U.S. persons are generally prohibited from engaging in transactions involving blocked persons without authorization. Violations can result in civil or criminal penalties.

For Rwanda, the action underscores international scrutiny of its mineral processing sector and cross-border trade practices. For the DRC, it aims to reduce revenue flows to armed groups and support efforts to establish traceable, licit supply chains. Globally, companies in electronics, jewelry, and other industries reliant on gold and critical minerals face heightened expectations for supply chain due diligence to avoid indirect exposure to sanctioned entities.

Challenges in Enforcing Mineral Trade Sanctions

Enforcing sanctions on conflict minerals involves tracing opaque supply chains that often cross multiple borders and involve numerous intermediaries. Gold’s high value and portability make it particularly susceptible to smuggling. Effective implementation requires cooperation among governments, financial institutions, refiners, and end-users, along with robust verification mechanisms such as chain-of-custody documentation and third-party audits.

Non-U.S. persons risk secondary sanctions exposure if they cause or conspire to cause U.S. persons to violate the measures. Financial institutions must screen transactions and customers against the Specially Designated Nationals and Blocked Persons List.

Outlook for Regional Peace and Transparent Supply Chains

U.S. officials expressed hope that disrupting these networks will create space for the DRC, Rwanda, and partners to build a new system of responsible mineral production. The Washington Accords framework envisions fully licit and transparent regional minerals sectors that drive economic growth rather than conflict. Continued diplomatic engagement, combined with targeted sanctions and private-sector due diligence, forms the core of this approach.

Stakeholders including governments, industry associations, and civil society organizations continue to advocate for stronger traceability standards and support for artisanal miners transitioning to formal, conflict-free operations.

Photo by Nelly Antoniadou on Unsplash

Broader Context of Critical Minerals and International Security

Gold and other minerals from the Great Lakes region of Africa play roles in electronics, renewable energy technologies, and jewelry markets worldwide. Ensuring these resources do not finance armed conflict aligns with broader U.S. and international goals of securing stable, ethical supply chains for critical materials. The current sanctions reinforce commitments made in the Washington Accords to expand legitimate trade and investment while addressing root causes of instability.

Practical Steps for Businesses and Investors

Companies sourcing gold or other minerals from the region should review their supply chains for any connections to designated parties. This includes mapping suppliers back to the point of extraction, implementing risk-based due diligence programs, and maintaining records of transactions. Consulting legal counsel familiar with OFAC regulations and considering participation in industry-led responsible sourcing initiatives can help mitigate compliance risks.

Financial institutions are advised to enhance screening processes and report any potential matches or suspicious activity. Individuals with information about sanctions violations may submit details through established channels, including whistleblower programs where applicable.