UAE Intensifies Gold Sector Oversight to Combat Money Laundering

The UAE Ministry of Economy has ramped up efforts to enforce legislative and regulatory frameworks aimed at combating money laundering. The ministry has been conducting extensive field inspections in the precious metals and gemstones sectors, leading to temporary suspensions and fines for several gold refineries.

As part of these measures, 32 gold refineries, representing 5% of the local gold market, were temporarily shut down for three months from July 24 to October 24, 2024. These suspensions came after the refineries committed a total of 256 violations, averaging eight violations per refinery. Key infractions included failing to implement risk assessment measures, neglecting to report suspicious transactions to the Financial Intelligence Unit, and not screening customer and transaction databases against terrorism lists.

Abdullah Ahmed Al Saleh, Undersecretary at the Ministry of Economy, emphasized the UAE's steadfast commitment to enhancing its legislative and regulatory systems to fight money laundering. He highlighted the ministry's ongoing efforts to bolster regulatory oversight across various non-financial business and professional sectors, including precious metals trading, real estate brokerage, corporate service providers, and auditing firms.

In September 2022, the Ministry of Economy introduced a due diligence policy for responsible supply chains, particularly in the gold sector, which was enforced starting January 2023. This policy aligns with global standards, notably those set by the Organisation for Economic Co-operation and Development (OECD), ensuring robust national measures against money laundering and terrorist financing.

The UAE's proactive approach includes rigorous inspection campaigns to ensure compliance with anti-money laundering laws, reflecting the nation's dedication to global best practices in regulatory enforcement.
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