Amid a wave of geopolitical instability and surging demand for the metal, gold is increasingly attractive as a strategic financial vehicle for organized crime, sanctions evasion, corruption and political control, with disastrous implications for the environment, human rights and security. Impacts include river pollution, forest destruction and grave abuses against affected communities.
With the UK serving as the centre of the world’s largest over-the-counter gold market, the government is uniquely exposed to the risks associated with illicit gold flows, and also well positioned to combat the threat through domestic policies and international partnerships. Acknowledging the illicit gold crisis, the UK government is featuring gold alongside two other high-risk asset classes – crypto and property – at the Illicit Finance Summit (June 23-24) to be held concurrently with London Action Climate Week (June 20-28).
A coalition of 34 civil society groups welcome the UK government’s initiative, but warn that current levels of ambition are not on track to match the scale of the illicit gold threat. Drawing on their collective expertise working on gold-related corruption, insecurity, money laundering, and environmental and human rights harms, the organisations have advanced joint recommendations for action by the international community as well as the UK, as the host and lead of the Summit.
