Abu Dhabi: The UAE decided to temporarily suspend activities at 32 gold refineries as part of a series of inspections related to the trade and industry of precious metals and gemstones to ensure compliance with anti-money laundering legislation in the gold sector.
These inspections, carried out according to a clear office and field inspection mechanism, led to the temporary suspension of operations for 32 gold refineries in the local market. This suspension affects 5 per cent of the gold sector in the country, and will take effect from July 24 to October 24, 2024.
These refineries committed a total of 256 violations, averaging 8 violations per refinery. The most notable infractions included failure to implement necessary risk identification measures, failure to report suspicious transactions to the Financial Information Unit when required, and failure to screen customer databases and transactions against names on terrorist lists.
Abdullah Ahmed Al Saleh, Undersecretary of the Ministry of Economy, said: "The UAE is steadfast in its commitment to developing a comprehensive legislative and regulatory framework to combat money laundering. We are dedicated to achieving the highest levels of compliance with responsible gold supply chain due diligence regulations by aligning with the best international practices in this field."
He added that the ministry is dedicated to enhancing its control role over designated non-financial business and professions sectors in the country. This includes the trade and manufacture of precious metals and stones, real estate brokers, corporate service providers, and auditors. The ministry is intensifying inspection campaigns to ensure the highest levels of compliance with the country’s anti-money laundering legislation.
In September 2022, the ministry announced the implementation of Supply Chain Due Diligence regulations. The policy is part of a comprehensive set of regulations and rules designed to establish a robust national framework to combat money laundering and terrorist financing within the precious stones and metals trade sector (gold). These regulations came into effect in January 2023.
The ministry illuminated that the implementation of due diligence regulations for the responsible supply chain of gold is part of its supervisory role over the gold sector and the trade and industry of precious metals and gemstones. This initiative aligns with the country’s commitment to international standards, notably those established by the Organisation for Economic Cooperation and Development (OECD).
