UAE suspends Emirates Gold refinery from its 'good delivery list'. London Bullion Market Association also stops the company’s affiliate membership
16 July 2023, 12:00 AM
31 August 2023, 12:00 AM
UAE has suspended one of its biggest gold refineries, Emirates Gold DMCC, from its approved “good delivery list”, a certification scheme that sets responsible sourcing rules.
The suspension of Dubai-based Emirates Gold, which has been operating for 30 years, is temporary and was effective from July 7, the government website showed on Friday.
The country unveiled the UAE Good Delivery Standard for gold in November 2021, a voluntary national standard for the sector to establish a framework that favours ideal specifications.
Refiners must meet anti-money laundering and responsible sourcing standards to be included on the list, that grants them access to the nation’s gold market.
On Friday, the London Bullion Market Association, which regulates the world’s largest gold trading hub, followed and suspended Emirates Gold's affiliate membership, citing a recent “due diligence review”.
“As the independent authority for precious metals, LBMA sets standards and upholds trust in the global market,” the regulator said.
“Our rules are an essential part of this function. It is a condition of continued LBMA membership that these rules and obligations are accepted and observed. We, therefore, take very seriously any breaches of the rules.”
Emirates Gold DMCC has clarified that the suspension of its UAE Good Delivery accreditation is a temporary one and its management is working with the Emirates Bullion Committee to resolve their concerns and have the accreditation reinstated.
Emirates Gold DMCC has not lost its trading licence as incorrectly reported in certain articles, it said, adding that it has not been party to any money laundering activity as "incorrectly reported on certain websites".
UAE unveiled the Good Delivery Standard for gold in November 2021, a voluntary national standard. Refiners must meet certain conditions including anti-money laundering and responsible sourcing standards to be included on the list.
The Emirates Gold statement said it has passed all recent compliance audits relating to the Emirates Bullion Committee Compliance requirements for UAE Good Delivery Accreditation, the LBMA Responsible Gold Guidance audit and the Anti Money Laundering audit. Emirates Gold has received highly positive feedback from its compliance auditors on the strength of its compliance processes, it claimed.
"The suspension by the Emirates Bullion Committee has nothing whatsoever to do with Emirates Gold’s compliance processes, activities or quality control practices and to the best of our knowledge the suspension has come about because of the Emirates Bullion Committee’s perceived risk to its reputation of our shareholding structure. There have been no concerns raised about Emirates Gold’s responsible sourcing and anti-money laundering practices," it said.