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22 March 2021

The Rights and Accountability in Development (RAID), SwissAid, Fastenopfer, and Society for Threatened Peoples addresses some major issues in the LBMA Responsible Gold Guidance(RGG), argues “These rules have some major challenges facing the required standard and should not be recognized.” Furthermore, investor argues these rules “does not align” with OECD Due Diligence Guidance for Responsible Supply Chains. 

 

Major CSOs raised a key concern about the changes made. They state that LBMA should refine the statement to “companies should suspend trade only as last resort” as opposed to its previous statement that “companies should suspend trade only if there’s a possibility the gold is illegitimate.”

 

Investor wrote back a letter to LBMA raising 11 key issues and suggested:

  • Lack of transparency in annual reporting
  • Origin of refined gold is not correctly reported
  • Weak guidance on suspending trade with problematic suppliers
  • Low quality of audits
  • Lack of disclosure of audit findings
  • LBMA lacks access to crucial information
  • Questionable independence of auditors
  • Opaque review processes
  • Findings are withheld when incidents are investigated
  • Lack of sanctions
  • Lack of independence

Source - Investment week

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