Page 449 - MOE ENGLISH PR REPORT - AUGUST 2024

“Some players might have cut corners, or not fully applied the new rules implemented by the UAE,
but overall the industry is made up of fair, competitive and law-abiding players,” he said.

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.

The new policy governs the responsible sourcing of gold by precious metal importers and refiners.
Those found in breach of the regulations face fines in the range of Dh50,000 to Dh5 million.
Regulated businesses must comply and enforce the new provisions. These include companies
operating refineries and involved in the recycling of gold products inside and outside the country.

The initiative includes the establishment of the Emirates Gold Bullion Committee to unify national
efforts to enhance oversight of the sector, with the participation of private companies, and the
setting up of a federal platform for gold trading.

The regulations specify the affected entities, which include companies involved in refining and
recycling gold products inside and outside the country, businesses falling under the precious
metals and gemstones trade sectors, and those labelled as designated non-financial businesses or
professions.

The rules require these companies to take the necessary steps and adapt their policies and
procedures to prevent the misuse of gold imports in money laundering or other financial crimes.
Last year, the UAE suspended the accreditation of Emirates Gold DMCC, one of the country’s
biggest gold refineries, over concerns that its owners had ties to alleged money launderers.

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