The UAE Ministry of Economy yesterday announced a new policy about responsible sourcing of gold for importers and refiners, while violators stand to face penalty up to Dh.5million.
The new laws responsible for sourcing of gold will be applicable to companies working in the fields of gold refining, recycling of gold products within and out of country, trading with precious metals and gemstones, all of which are classified as designated non-financial businesses and professions (DNFBPs).
Speaking on this, Safeya Hashim Al Safi, Director, Anti-Money Laundering Department, Ministry of Economy, said “The new law will be applicable to gold refineries, importers, those dealing with scrap gold and dealing with gold mining. This rule is also applicable to companies in the UAE mainland and freezones as part of UAE’s efforts to implement all Anti-Money laundering and combating the Financing of Terrorism (AML/CFT) regime.”
At present, there are 28 precious metal refineries operating in the country.
The new policy, which will come into effect from January 2023 is as per the guidance from Organization for Economic Cooperation and Development (OECD) and is corresponding protocol for gold.
The regulations are expected to support the UAE in becoming a favoured destination for manufacture and sale of gold and precious metals, in the region and at global level.
As per the latest regulations, companies violating the rules may face Dh.50,000 to Dh.5mn penalty for not adhering to new norms. Violators may face imprisonment too.
“We have witnessed the implementation of due diligence in various jurisdictions around the world to varying degrees. This is the first time that gatekeepers, which are DNFBPs -represented by gold refiners - have committed to a third-party review of their gold supply chain, enhancing the confidence of the international trade community in consolidating the UAE’s position as a global trading hub for the manufacturing and trading of gold,” she said.