The licenses of 32 gold refineries in the UAE have been suspended by the Ministry of Economy due to non-compliance with anti-money laundering regulations. This measure, affecting 5% of the country’s gold industry, will be in place from July 24, 2024, until October 24, 2024.
This stoppage comes after a set of on-site inspections required to guarantee compliance with AML standards in the buying and selling of valuable metals and gemstones. 256 violations were found during the inspections at the refineries, with an average of eight infractions per refinery.
Some key violations were not having effective risk assessment processes, not informing the Financial Information Unit about suspicious transactions, and failing to screen customer and transaction records against terrorism watchlists.
Abdullah Ahmed Al Saleh, Undersecretary of the Ministry of Economy, restated the UAE’s dedication to enhancing its legal and regulatory structure in the fight against money laundering. He stated that we are concentrated on meeting top-tier compliance with gold supply chain due diligence regulations, in line with global best practices.
The Due Diligence Regulations Policy for Responsible Sourcing, introduced by the Ministry in September 2022, became effective in January 2023. This policy is a key component of a broad initiative aimed at addressing money laundering and terrorist financing in the precious stones and gold industries, in accordance with global guidelines established by the Organisation for Economic Co-operation and Development (OECD).
