The US Treasury has sanctioned Rwanda's Gasabo Gold Refinery LTD, along with its chairman Jean Malic Kalima and general manager Bosco Kayobotsi. The action, announced June 25 by OFAC, freezes their US-based assets and bars American business with them.
Officials allege the refinery acted as a conduit for gold plundered from territory controlled by the M23 militia in the Democratic Republic of Congo. At least 60 kilograms of gold, worth millions, was reportedly moved from South Kivu province to the Gasabo facility in early 2026, allegedly with involvement from Rwandan military forces.
Rwanda's gold exports totaled $885 million in 2023, making the metal its most valuable export commodity. The US action is part of a coordinated international effort. The European Union imposed its own sanctions on related entities in March 2025.
The M23 rebel group controls significant territory in Congo's mineral-rich North and South Kivu provinces. Rwanda has faced repeated accusations of backing the group, which Kigali has historically denied.
While no cryptocurrency has been directly implicated, the sanctions create a serious compliance challenge for issuers of gold-backed stablecoins and tokenized gold products. They must verify their physical gold supply chains do not touch sanctioned entities. Violating OFAC sanctions carries severe penalties, including criminal prosecution.