London has\u00a0stood at the heart\u00a0of the world\u2019s gold trade\u00a0for centuries\u00a0and\u00a0remains\u00a0one of\u00a0its most important bullion centres.\u00a0Holding around 20\u00a0percent\u00a0of global financial gold.\u202f\u00a0<\/p>\n
But\u00a0today\u2019s\u00a0subject matter\u00a0actually\u00a0carries\u00a0more of\u00a0a\u00a0personal\u00a0significance\u00a0for me.\u00a0<\/p>\n
My\u00a0grandfather was a gold miner in Guyana.\u00a0It\u2019s\u00a0what Guyanese\u00a0people\u00a0called\u00a0a \u201cpork-knocker\u201d.\u00a0Named\u00a0for\u00a0the\u00a0pickled pork\u00a0they would eat\u00a0after\u00a0a long day\u2019s mining.\u00a0<\/p>\n
And like\u00a0prospectors\u00a0before him, he travelled\u00a0in search of\u00a0gold,\u00a0opportunity\u00a0and a better life.\u00a0<\/p>\n
His story speaks to both the\u00a0hope\u00a0and\u00a0hazard\u00a0of gold.\u00a0<\/p>\n
The hope of work,\u00a0of course of\u00a0discovery\u00a0\u2013 I have to say there\u00a0weren\u2019t\u00a0many discoveries!\u00a0\u2013\u00a0and prosperity, but\u00a0also\u00a0the hazard of a precious resource that, if exploited\u00a0can scar landscapes, endanger lives\u00a0and enrich the\u00a0wrong\u00a0people.\u00a0<\/p>\n
And\u00a0while illicit gold rarely captures headlines in the way other crimes\u00a0of course\u00a0do\u00a0its consequences\u00a0are\u00a0real in the lives of our citizens\u00a0and they are far-reaching.\u00a0<\/p>\n
So we are here\u00a0in\u00a0common purpose:\u00a0to ensure that\u00a0gold\u00a0is sourced,\u00a0is\u00a0traded\u00a0and used responsibly.\u00a0To ensure\u00a0sustainability, higher\u00a0standards\u00a0and integrity.\u00a0But\u00a0above all,\u00a0to\u00a0ensure\u00a0that\u00a0it is\u00a0trust\u00a0that\u00a0defines the global gold market, and not any sense of criminality.\u00a0<\/p>\n
That matters enormously here in the United Kingdom.\u00a0As home to one of the world\u2019s leading bullion markets\u00a0London has both an interest\u00a0and a\u00a0responsibility\u00a0in\u00a0maintaining\u00a0the\u00a0very\u00a0highest\u00a0of\u00a0standards.\u00a0<\/p>\n
The LBMA,\u00a0the World Gold Council,\u00a0civil\u00a0society\u00a0and others here\u00a0in this room\u00a0have\u00a0shown\u00a0genuine leadership\u00a0in strengthening responsible sourcing, in improving due diligence\u00a0and building confidence in global markets.\u00a0And\u00a0the\u00a0London Good Delivery system\u00a0remains\u00a0a globally recognised benchmark for trust,\u00a0and quality.\u00a0<\/p>\n
So\u00a0I think\u00a0we\u00a0are making\u00a0real\u00a0progress.\u00a0But\u00a0of course\u00a0there is more to do.\u00a0<\/p>\n
This\u00a0is not simply a British challenge.\u00a0Nor even an industry challenge.\u00a0It is a\u00a0global\u00a0challenge, worth at least\u00a0\u00a390 billion\u00a0every year.\u00a0<\/p>\n
And a\u00a0challenge of that scale demands a response of equal ambition.\u00a0<\/p>\n
For\u00a0criminals,\u00a0the golden glimmer of opportunity\u00a0is\u00a0the means of moving and\u00a0concealing\u00a0illicit wealth.\u00a0<\/p>\n
Easily transportable, gold can fit a fortune into the palm of\u00a0unscrupulous hands.\u00a0<\/p>\n
Unlike cash, it does not need a bank account, a\u00a0password\u00a0or an internet connection.\u00a0It is\u00a0harder to\u00a0trace, once\u00a0it flows into\u00a0formal supply chains\u00a0and\u00a0so\u00a0uniquely\u00a0attractive\u00a0to\u00a0criminals the world over.\u00a0<\/p>\n
The consequences\u00a0are\u00a0felt everywhere, in\u00a0different ways.\u00a0First, in conflict.\u00a0In\u00a0Russia\u2019s brutal war in Ukraine\u00a0and the war\u00a0in Sudan, both bankrolled by dirty gold.\u00a0<\/p>\n
Second,\u00a0at the sharpest end,\u00a0in\u00a0the\u00a0poorest\u00a0nations\u00a0children exposed to dangerous working conditions, rivers poisoned by mercury, citizens deprived of schools,\u00a0hospitals\u00a0and public services\u00a0as resources that\u00a0should\u00a0be creating opportunity.\u00a0<\/p>\n
Instead\u00a0line\u00a0the pockets of kleptocrats\u00a0and\u00a0their cronies.\u00a0<\/p>\n
And third, in organised crime, I say in my capacity as Secretary of State for Justice.\u00a0It\u00a0is\u00a0so\u00a0easy to think of these harms as distant problems, confined to remote mines, far away.\u00a0They are not.\u00a0<\/p>\n
The same criminal networks that profit from illicit gold\u00a0are the gangs\u00a0involved in drug trafficking, people smuggling, cybercrime and fraud.\u00a0<\/p>\n
What begins thousands of miles away\u00a0has direct\u00a0consequences on the streets of British towns and cities\u00a0and other towns and cities around the world.\u00a0And that is the\u00a0human cost\u00a0of illicit gold.\u00a0<\/p>\n
So\u00a0tackling\u00a0it\u00a0is not\u00a0just\u00a0a matter of market integrity.\u00a0It is a matter of\u00a0public\u00a0safety\u00a0and it is a critical front in the wider fight against illicit finance.\u00a0<\/p>\n
Gold is\u00a0also\u00a0being abused as a means of\u00a0conducting\u00a0criminal\u00a0transactions\u00a0and we\u00a0are seeing\u00a0an increasing\u00a0relationship between gold and crypto\u00a0to further\u00a0hide\u00a0illegal\u00a0activity.\u00a0\u00a0<\/p>\n
Ancient and modern\u00a0forms of finance\u00a0being pressed into service to fund\u00a0illegal wars, circumvent sanctions\u00a0or launder\u00a0proceeds\u00a0of crime.\u00a0\u00a0<\/p>\n
And as gold prices\u00a0soar\u00a0even\u00a0higher, a\u00a0140 per cent rise since January 2023\u00a0and the world around\u00a0us\u00a0is ever-more turbulent\u00a0the\u00a0rewards for criminal gangs\u00a0become even\u00a0greater\u00a0and so\u00a0does their determination to exploit this trade.\u00a0<\/p>\n
And that is\u00a0why our response must be\u00a0even stronger.\u00a0<\/p>\n
The good news is that we are not\u00a0starting from scratch\u00a0here.\u00a0<\/p>\n
As I mentioned earlier\u00a0\u2013 we are seeing progress, much of it\u00a0represented\u00a0here\u00a0in this room.\u00a0And the UK\u00a0Government is committed to building on\u00a0that progress.\u00a0<\/p>\n
Last year,\u00a0my\u00a0ministerial\u00a0colleague\u00a0at the Foreign,\u00a0Commonwealth\u00a0and Development\u00a0Office,\u00a0Stephen Doughty\u00a0announced\u00a0a new,\u00a0dedicated Public-Private Partnership on illicit gold flows\u00a0with\u00a0a domestic\u00a0UK\u00a0focus\u00a0through the Joint Money Laundering Intelligence Taskforce.\u00a0<\/p>\n
Chaired by the\u00a0Foreign Office\u00a0and\u00a0the\u00a0industry, it brings together government, law enforcement,\u00a0civil society,\u00a0the\u00a0UK gold\u00a0industry\u00a0and the financial sector\u00a0to share intelligence,\u00a0identify\u00a0threats and close the gaps that criminals\u00a0seek\u00a0to exploit.\u00a0<\/p>\n
Its early\u00a0success\u00a0has reinforced the fact\u00a0that criminal\u00a0networks do not\u00a0operate\u00a0in silos.\u00a0<\/p>\n
So\u00a0neither\u00a0can\u00a0we.\u00a0<\/p>\n
Just as\u00a0criminals\u00a0collaborate across borders,\u00a0jurisdictions\u00a0and markets, those\u00a0who\u00a0seek\u00a0to\u00a0stop them must collaborate\u00a0even\u00a0more\u00a0effectively.\u00a0<\/p>\n
Together, we must ensure there is no\u00a0safe\u00a0haven\u00a0for illegally produced gold.\u00a0No route to market\u00a0for gold smuggled across borders\u00a0and no opportunity for criminal networks to\u00a0profit from exploitation and corruption.\u00a0\u00a0<\/p>\n
Having seen first-hand, when I was Foreign Secretary,\u00a0the\u00a0effort refineries\u00a0put into\u00a0diligence and scrutiny\u00a0I am convinced that lasting progress depends on partnership across the entire supply chain.\u00a0<\/p>\n
That is why\u00a0I\u2019m\u00a0pleased my colleagues at the\u00a0FCDO\u00a0are pursuing\u00a0a new\u00a0international\u00a0public-private partnership on illicit gold flows.\u00a0\u00a0<\/p>\n
This\u00a0will\u00a0bring\u00a0together\u00a0governments, industry and civil society to tackle illicit gold across the\u00a0global\u00a0supply chain\u00a0and together, we\u00a0can\u00a0strengthen responsible sourcing, improve information sharing, support the implementation of OECD\u00a0guidance,\u00a0and\u00a0FATF\u00a0\u00a0standards\u00a0and disrupt the criminal networks that profit from illicit\u00a0gold\u00a0trade.\u00a0<\/p>\n
No business can solve it alone.\u00a0No\u00a0government can solve this alone.\u00a0And no\u00a0country\u00a0can solve it alone.\u00a0<\/p>\n
So\u00a0our\u00a0response must be international,\u00a0must be\u00a0coordinated,\u00a0and\u00a0must be\u00a0sustained\u00a0\u2013\u00a0principles at the heart\u00a0of the UK\u2019s\u00a0Illicit Finance Summit\u00a0which my friend the Foreign Secretary will host this December.\u00a0\u00a0<\/p>\n
The purpose is clear:\u00a0to expose the scale of illicit finance, to strengthen transparency,\u00a0enforcement\u00a0and international standards\u00a0and to build the partnerships needed to turn shared commitments into collective action.\u00a0<\/p>\n
But while we strengthen our response to illicit gold flows, we must also address the harms they cause\u00a0at source.\u00a0From mercury-polluted rivers and deforestation,\u00a0to the exploitation of communities and Indigenous Peoples\u00a0who\u00a0depend on these environments.\u00a0<\/p>\n
That is why, alongside today\u2019s focus on international supply chains, and the Illicit Finance Summit\u2019s focus on illicit flows\u00a0London Climate Action Week will highlight how the UK is working\u00a0internationally\u00a0to address the environmental, social and climate\u00a0damage wrought by\u00a0the global trade in dirty gold.\u00a0<\/p>\n
The challenge is\u00a0clearly\u00a0complex, but the direction is clear.\u00a0We must make it harder for criminals to hide wealth.\u00a0Harder for corrupt actors to exploit global markets\u00a0and harder for organised crime to profit from human suffering.\u00a0<\/p>\n
Because, ultimately,\u00a0that\u00a0is what the\u00a0fight against illicit gold is\u00a0about.\u00a0<\/p>\n
It is about whether valuable resources\u00a0benefit\u00a0communities, or criminal networks.\u00a0Whether wealth serves citizens, or corrupt elites\u00a0and whether organised crime continues to grow stronger.\u00a0\u00a0<\/p>\n
Or\u00a0whether,\u00a0together,\u00a0we cut off the golden oxygen supply that sustains it.\u00a0<\/p>\n
Gold should be a source of prosperity, not exploitation.\u00a0A source of opportunity, not criminality\u00a0and ensuring that\u00a0that\u00a0remains\u00a0true is a responsibility that belongs to\u00a0all of us.<\/p>\n","protected":false},"excerpt":{"rendered":"London has\u00a0stood at the heart\u00a0of the world\u2019s gold trade\u00a0for centuries\u00a0and\u00a0remains\u00a0one of\u00a0its most important bullion centres.\u00a0Holding around 20\u00a0percent\u00a0of global…\n","protected":false},"author":2,"featured_media":294292,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[59,57,58,50,56,54,55],"class_list":["post-645730","post","type-post","status-publish","format-standard","has-post-thumbnail","category-united-kingdom","tag-gb","tag-great-britain","tag-greatbritain","tag-news","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/645730","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=645730"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/645730\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/294292"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=645730"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=645730"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=645730"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}