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8/16/24, 1:31 PM UAE suspends 32 gold refineries in anti-money laundering crackdown | The National
The suspension of gold refineries by UAE authorities may lead to a short-term shortage

and a slight price increase, according to Niraj Jain, UAE practice lead at Indigenesis

Consulting.

Importantly, it serves as a warning for other businesses to strengthen their AML and CFT
practices, he warned.

While historical concerns about transparency exist, the UAE is committed to improving its

regulatory framework, Mr Jain said.

Sunita Mathur, assistant professor at Heriot-Watt University Dubai, said: “Most of the

UAE’s gold trade is largely legitimate and regulated. However, it's essential to note that

there will always be a risk of illicit activities in any large and complex market, especially

gold.”

“The government has recognised these risks and has made all efforts for due diligence,

increased transparency and collaboration with international authorities. The recent

suspension of 32 gold refineries is a live example by the government.”

Kayne Osbourne, head of compliance and money laundering reporting at Dubai-based

FinTech platform baraka, said the UAE's gold market is robust, with prices typically

responding to global economic forces rather than individual enforcement actions.

“National efforts to come off the FATF grey list were not a one-and-done exercise. We're

witnessing continued efforts to enforce high standards both onshore and in the free zones

from license revocations to suspensions and fines,” he added.

Last year, the UAE introduced a new set of regulations on gold imports in line with

international rules that seek to thwart money laundering and the financing of terrorism and

illegal organisations.

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