Page 395 - MOE ENGLISH PR REPORT - AUGUST 2024

responsible sourcing of gold in the country forms part of its role in monitoring the gold sector and
the activities of precious metals and gemstones trade and industry. This is in line with the country’s
adherence to the international standards adopted in this regard, the most important of which are
the standards of the Organization for Economic Co-operation and Development (OECD).

In this context, the Ministry pointed out that it has carried out a series of field inspection tours on
activities related to precious metals and gemstones trade, following a clear mechanism for office
and field inspection. As a result of these tours, the operations of 32 gold refineries in the local
market, which accounts for five per cent of the country's gold sector, have been temporarily
suspended for three months starting July 24, and lasting until October 24, 2024.

The Ministry explained that these refineries committed 256 offences, with eight violations per
refinery, most notably the failure to adopt necessary measures and procedures to identify risks,
failure to notify the Financial Intelligence Unit (FIU) of suspicious transactions where necessary, as
well as the failure to verify customers' databases and transactions against names on terrorism lists.

H.E. Abdullah Ahmed Al Saleh, Undersecretary of the Ministry of Economy, said: “The UAE reaffirms
its commitment to developing a comprehensive legislative and regulatory system for anti-money
laundering and achieving the highest levels of compliance with the due diligence regulations for the
responsible sourcing of gold.”

He added: “The Ministry continues to strive to strengthen its supervisory role on various DNFBP
sectors in the country, which include the operations of the precious metals and gemstones industry
and their trade, activities of real estate agents, company service providers, and auditors’
operations. We are increasing inspection campaigns to ensure the highest levels of compliance
with the UAE’s AML/CFT law.”

In September 2022, the Ministry of Economy announced the Due Diligence Regulations for
Responsible Sourcing of Gold, within a set of regulations and standards, aimed at establishing a
strong national framework for countering money laundering and combatting the financing of
terrorism in one of the important economic sectors - the gemstones and precious metals (gold)
trade sector. The policy came into force in January 2023.

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