State Applications of Responsible Sourcing Frameworks: Banco Central del Ecuador’s ASGM Purchasing Program

Abstract

Artisanal and small-scale gold mining (ASGM) supplies a significant share of gold production and rural livelihoods in many developing countries. Thus, the sector has economic importance and interventions which improve prices or working conditions could help many poorer actors. However, ASGM’s association with environmental and social challenges makes responsible sourcing a central challenge for institutions that purchase ASGM gold, especially public actors. This master’s project examines the Central Bank of Ecuador’s (CBE) domestic gold purchasing program from ASGM producers, in light of international standards like OECD’s Due Diligence Guidance and the CRAFT Code as well as best practices by other central banks, especially the Bank of Ghana and the Central Bank of Philippines. The study focuses on current purchasing processes to identify gaps and opportunities to improve both tracing and responsible sourcing. The analysis finds that CBE has a robust transaction-control model, with clear seller eligibility, assay, pricing, and payment procedures. Opportunities remain to strengthen upstream supply chain traceability; thus, this report proposes extending CBE’s current governance from point of sale into the upstream supply chain by following standards to strengthen risk mitigation, improve traceability, and support a more transparent and credible CBE gold-purchasing model.