Page 448 - MOE ENGLISH PR REPORT - AUGUST 2024

The suspensions began on July 24 and will last until October 24. The 32 refineries account for 5 per
cent of the country’s gold sector, the ministry said. However, the refineries were not named.

“The UAE is a major player in the global gold industry. Dubai has become one of the largest gold
trading hubs in the world, where the Emirates is presently the fourth biggest country in the world for
gold imports,” said James Willn, partner for the energy and natural resources group at law firm Reed
Smith.

“This phenomenal growth has unfortunately brought risk, especially with respect to money
laundering, given the gold industry has in the past been a pathway for ill-gotten funds to enter the
financial system.
“No doubt live to this issue, the UAE Ministry of Economy has been both active and vocal for a
number of years now, in terms of outlining to UAE-based gold refineries the need to tighten up their
due diligence regulations (on both suppliers and customers) for the responsible supply of gold in
the region, otherwise these refineries run the risk of sanctions and penalties. The suspensions
imposed by the ministry this week are clearly in respect of those refineries who have failed to heed
the warnings.”

The Financial Action Task Force, the global anti–money laundering watchdog, removed the UAE
from its “grey list” earlier this year, noting it had made some “key reforms” to its laws.

The country has made considerable efforts to shore up its anti-money laundering regime and
combat the financing of terrorism.
In 2021, it founded an Executive Office for Anti-Money Laundering and Counter-Terrorism Financing
after passing an anti-money laundering and terrorism financing law in 2018.

The value of fines imposed by regulatory authorities in the field of AML/CFT between January and
October last year reached Dh249.2 million ($67.9 million), compared with Dh76 million in 2022.

They collected more than Dh10 million in fines imposed as targeted financial sanctions between
July and October 2023.

The UAE authorities recorded suspicious activity reports relating to the gold sector increased to
6,432 last year from 223 in 2021, according to Bloomberg, which quoted the Ministry of Foreign
Affairs.

Referring to the suspension of refineries, Roberto d'Ambrosio, chief executive of multi-asset broker
Axiory Global, said despite short-term concerns that suppliers and buyers might have, the gold
market will not be impacted beyond measure.

“This action and others to come will create a fairly competitive marketplace for the whole industry,”
he said.

“What we witness today is the consequence of a wide review of policies and procedures on anti-
money laundering and finance of terrorism, which fully embeds the UAE within global efforts to
combat these plagues.”

Mr d'Ambrosio said he does not agree with generally labelling gold trades in the UAE as dodgy.

https://www.msn.com/en-ae/news/other/uae-suspends-32-gold-refineries-in-anti-money-
laundering-crackdown/ar-AA1orxsE