A coalition of 34 civil society organizations has called for sweeping reforms to combat illicit gold flows and related financial crimes ahead of the upcoming UK Illicit Finance Summit scheduled for June 23–24 at Lancaster House.
In a policy briefing released ahead of the summit, the groups warned that gold is increasingly being used as a strategic tool for money laundering, corruption, sanctions evasion and organized crime. They stressed that without concrete commitments and enforceable regulations, global efforts to curb illicit financial flows linked to gold will remain ineffective.
The summit, hosted by the UK Government, is expected to bring together governments, civil society and private sector actors to strengthen international cooperation against corruption and illicit finance.
Rising Risks in Global Gold Trade
The report highlights growing concerns about the role of gold in global financial crime, noting that its high value, portability and liquidity make it attractive to criminal networks. It also links illicit gold mining and trade to environmental destruction, human rights abuses and conflict financing.
The UK is identified as both vulnerable to and capable of addressing the problem. London remains a dominant hub for over-the-counter gold trading, accounting for an estimated 70 percent of global transaction volumes. This position, the report argues, places a responsibility on the UK to lead reforms.
Industry bodies such as the London Bullion Market Association, the World Gold Council and the Responsible Jewellery Council were cited as key institutions whose standards and oversight mechanisms require strengthening.
Calls for Domestic and Global Reforms
Among the key recommendations, civil society groups urged the UK to classify illicit gold mining and trade as predicate offences for money laundering under existing laws such as the Proceeds of Crime Act 2002. They also called for stricter regulations on gold imports and exports, enhanced due diligence requirements, and improved transparency in gold trading and ownership structures.
The briefing further recommends expanding anti-money laundering rules to include gold traders and other “professional enablers,” as well as strengthening beneficial ownership registers to curb the use of anonymous shell companies.
At the international level, the report advocates for harmonized global standards on responsible gold sourcing, mandatory reporting of gold transactions, and stronger cooperation among financial intelligence units. It also proposes the creation of an international law enforcement task force dedicated to tackling illicit gold networks.
Financial Sector Under Scrutiny
The report found that more than 80 percent of surveyed financial institutions operate in high-risk areas linked to illegal mining, yet 40 percent have not implemented adequate mitigation measures. Civil society groups are urging regulators to issue clearer guidance and enforce stricter compliance requirements.
They also called for financial institutions to disclose exposure to illicit gold risks when raising capital and to adopt more rigorous due diligence practices in line with international standards set by bodies such as the Financial Action Task Force and the Organisation for Economic Co-operation and Development.
Focus on Partnerships and Inclusion
The coalition emphasized the importance of international partnerships involving governments, financial institutions, and local communities. It proposed the establishment of a global public–private partnership to improve intelligence sharing and enforcement, as well as stronger collaboration with agencies such as Interpol and Europol.
The report also underscored the need for inclusive approaches that involve affected communities, particularly in gold-producing countries, and called for greater protection for human rights defenders and whistleblowers.
Opportunity for UK Leadership
With the UK set to assume the presidency of the FATF in June 2026, civil society groups say the summit presents a critical opportunity to shape global standards on illicit finance and gold supply chains.
They urged the UK to move beyond broad commitments and adopt measurable actions with clear timelines and enforcement mechanisms.
“The summit must deliver concrete reforms, not just declarations,” the report states, warning that failure to act decisively could allow illicit gold networks to continue thriving within the global financial system.
Source: www.kumasimail.com
