The government finalizes the Gold Bill, which makes the trade of the mineral more restrictive.

Brazil Agency - The government has finalized the provisional measure known as the Gold MP, which introduces stricter rules for the purchase, sale, and transportation of gold in the country.

The document has already been signed by the Minister of Justice and Public Security, Flávio Dino. The measure will also be signed by the Ministries of Finance, Mines and Energy, Environment, and Indigenous Peoples, which participated in drafting the text. Afterwards, it will go to the Civil House. Finally, it will be signed by President Luiz Inácio Lula da Silva and sent to the National Congress. The text, however, is already in effect immediately, needing only confirmation by parliament to maintain its effects.

The proposal is the result of a working group created by the Ministry of Justice.

With this provisional measure, the government aims to combat illegal mining on indigenous lands and conservation units, mainly in the Amazon, as well as eliminate loopholes in legislation used to circumvent control over the mining supply chain.

“Today in Brazil, there is less control over gold than over timber or meat. With the provisional measure presented and already agreed upon with all government agencies, individuals selling gold will have a series of regulatory mechanisms,” explains the Secretary of Access to Justice, Marivaldo Pereira, in a statement from the department.

Between 2015 and 2020, the country traded 229 tons of gold with indications of illegality, according to a study by the Escolhas Institute.

The measure comes after the government declared a state of emergency due to the damage caused by illegal mining in the Yanomami Indigenous Territory in Roraima. It is estimated that 500 indigenous children have died as a result of the humanitarian crisis in the territory. The expansion of illegal mining in the Brazilian Amazon quadrupled between 2010 and 2020, according to [source needed]. Alliance in Defense of Territories dossier.

See below the main points of the Gold Provisional Measure:

• Controlled by the National Mining Agency.
• Transport and Custody Traceability System.
• Penalty of seizure and forfeiture if the rules are not followed.
• Mandatory electronic invoicing: in March, the Federal Revenue Service instituted the requirement for issuing electronic invoices This new regulation, which will come into effect in July, will allow transactions involving gold as a financial asset or exchange instrument. Currently, transactions are recorded using paper notes.
• The first sale of gold can only be made by entities authorized by the Central Bank (BC).
• The purchase must be paid for by bank transfer.
• End of presumption of good faithCurrently, a 2013 law allows gold to be considered legal based on information provided by the seller of the mineral and the good faith of the buyer.
• The possibility of holding those involved in the gold buying and selling chain accountable.