Illicit Gold Funding M23
United States sanctions Rwandan gold refinery and mining firms for funding M23 rebels in DRC.
Key Points
The Kalima-led mining portfolio sanctioned by OFAC includes Bugambira Mines Ltd, Wolfram Mining and Processing Ltd, and Rwinkwavu Mining Corporation Ltd, expanding the scope beyond Gasabo Gold Refinery to target the core actors in the minerals network.
The European Union separately sanctioned Gasabo Mines in May 2025 along with the CEO of Rwanda's mining regulator, signaling a broader, cross-Atlantic effort to disrupt illicit mineral flows linked to M23.
U.S. authorities detail a concrete gold-smuggling route: from South Kivu in eastern DRC into Rwanda, refined in Rusizi, and then routed toward Kigali for export.
The State Department frames the sanctions as advancing the Washington Accords for Peace and Prosperity, including a Regional Economic Integration Framework that envisions transparent, licit mineral supply chains.
Treasury Secretary Scott Bessent publicly asserted that the DRC’s mineral wealth rightfully belongs to the Congolese people, highlighting the humanitarian and developmental rationale behind the sanctions.
The U.S. Treasury sanctioned Rwanda's Gasabo Gold Refinery Ltd on June 25, 2026, accusing it of smuggling conflict gold from eastern Democratic Republic of Congo to fund the M23 rebel group. U.S. Treasury also sanctioned the refinery's chairman, Jean Malic Kalima, its general manager, Bosco Kayobotsi, and three mining firms tied to Kalima — freezing their assets and cutting them off from the U.S. financial system.
Treasury Secretary Scott Bessent said the DRC's mineral wealth "rightfully belongs to the Congolese people" and warned that Washington would "continue to take decisive action against those who enable violence." The move follows a coordinated U.S.-EU push to disrupt the illicit gold pipelines that have bankrolled armed groups in Africa's Great Lakes region for years.
The Gold Smuggling Route From Congo Into Rwanda
U.S. authorities laid out a specific smuggling route. Between January and February 2026, at least 60 kilograms of gold moved from South Kivu in eastern DRC across the Rusizi border into Rwanda. The Rwanda Defense Force (RDF) allegedly provided armed escort for the shipments. The gold was then refined at Gasabo's facility before being routed to Kigali for export, according to Business Insider Africa.
U.S. authorities allege that M23 and elements of the RDF ran a coordinated network to move conflict minerals out of rebel-controlled territory. Gasabo allegedly mixed the smuggled gold with legally sourced minerals — effectively laundering it. Rwanda itself has negligible gold deposits, yet it exported an estimated 19.4 tonnes of gold worth $1.5 billion in 2024, making gold the country's top foreign currency earner, Crypto Briefing reported.
Sanctions Expand Beyond the Refinery to Mining Network
OFAC's designations go beyond Gasabo Gold Refinery itself. Kalima's three associated firms — Bugambira Mines Ltd, Wolfram Mining and Processing Ltd, and Rwinkwavu Mining Corporation Ltd — were all sanctioned. The move targets what U.S. officials describe as the core financial architecture behind the conflict minerals pipeline, according to Yahoo News.
Foreign banks are now on notice too. The Treasury warned that any foreign financial institution handling transactions for the Kalima network risks being cut off from the U.S. financial system entirely — so-called secondary sanctions. Analysts say this is far more damaging than asset freezes alone, since Rwandan gold exporters rely heavily on international banking networks in the Gulf and beyond.
EU Moved First, But U.S. Sanctions Carry Far More Weight
This is not the first time Gasabo has been targeted. The European Union sanctioned Gasabo Gold Refinery in March 2025, along with Francis Kamanzi, the CEO of Rwanda's national mining regulator. The EU had already placed 32 individuals and 2 entities under sanctions related to the DRC conflict by mid-2025, according to Yahoo News.
But the EU action had limits. Rwanda's gold export earnings fell sharply — from $1.5 billion in 2024 to $517 million in 2025 — suggesting the EU sanctions did bite. Yet U.S. secondary sanctions are considered far more powerful, since they can cut off any global bank that does business with the designated network, not just European ones.
Peace Deal Exists on Paper — Smuggling Continued Anyway
The sanctions arrive despite a flurry of diplomatic activity. DRC President Félix Tshisekedi and Rwandan President Paul Kagame signed the Washington Accords for Peace and Prosperity in December 2025, overseen by President Trump. The deal included a Regional Economic Integration Framework meant to create a transparent, legal mineral supply chain. The State Department frames the June 2026 sanctions as enforcing that agreement, not undermining it, according to Business Insider Africa.
The Congolese government welcomed the sanctions, calling them a "necessary step to stop the plundering of our national wealth." Rwanda has historically pushed back on such measures. Rwandan officials have argued that targeting the RDF is one-sided, pointing to the DRC's failure to disband the FDLR, a Hutu armed group that threatens Rwanda's security. With gold now under financial siege, the durability of the Washington Accords faces a real test.
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