Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the adequacy of industry-led standards, including those of the London Bullion Market Association, to prevent conflict-linked gold from Sudan entering the United Kingdom market; and whether she plans to introduce statutory oversight of gold-supply-chain due diligence.

The trade of illicit gold funds undermines the rule of law and perpetuates human rights abuses. Gold extraction and smuggling operations represent a significant loss to Sudan and undermine effective resource governance. The UK has imposed sanctions on a number of individuals and businesses who are allegedly involved in the exploitation of gold resources in Sudan. Companies must conduct appropriate due diligence to ensure full compliance with these sanctions.

The UK Government engages with the gold industry, in particular the London Bullion Market Association (LBMA) and the World Gold Council, as well as the Organisation for Economic Co-operation and Development (OECD) to support responsible sourcing and rigorous due diligence standards to enhance resilience to illicit gold and identify malign actors in the supply chain. As the UK is an OECD member, businesses in the UK apply the OECD's Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk areas, including the LBMA. The UK is a global leader in tackling illicit gold flows, recently hosting a joint FCDO-HMRC Gold Conference and launching a public-private partnership with industry to clamp down on illicit flows.

The Government recognises the importance of high regulatory standards in financial markets. For over-the-counter wholesale markets for precious metals like the London Bullion Market, the Financial Conduct Authority recognises the Global Precious Metals Code, which sets out the standards and best practice expected from market participants in these markets.