Dh5 million fine for violators of new gold import law

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The announcement of these guidelines is the latest in a series of initiatives and policies launched by the UAE to enhance and govern the trade and circulation of gold…reports Asian Lite News

The UAE’s Ministry of Economy on Thursday announced a new policy regarding the responsible sourcing of gold for importers and refiners and violators could face a penalty of up to Dh5 million.

“Today marks the culmination of the UAE’s efforts to enhance the system of good delivery of gold through the issuance of Due Diligence Regulations for Responsible Sourcing of Gold,” said Safeya Al Safi, director of the Anti-Money Laundering Department, Ministry of Economy.

She said the new law will apply to gold refineries, importers, those deal with scrap gold and dealing with gold mining.

“This rule will apply to companies in the UAE mainland and free zones as part of UAE’s efforts to implement all Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) regime,” she added.

The announcement of these guidelines is the latest in a series of initiatives and policies launched by the UAE to enhance and govern the trade and circulation of gold in line with international standards and best practices, consolidating the UAE’s position as a leading global hub for gold trade.

Most prominent among these initiatives was the adoption of the Federal Policy for the Gold Sector by the Ministerial Development Council in December 2020. This initiative included the establishment of the Emirates Gold Bullion Committee to unify the national efforts to enhance the governance of the gold sector with the participation of the private sector, and the launch of a federal platform for gold trading.

The UAE also launched the UAE Good Delivery Standard for Gold in November 2021, a voluntary national standard for the gold sector to establish a framework that favours ideal specifications in the delivery and circulation of gold.

“The adherence to these guidelines is mandatory for all gold refineries operating in the country, starting from next January, in line with national trends in this regard. It takes international best practices and the findings and recommendations of the Financial Action Task Force (FATF) into account, and helps consolidate the UAE’s position as a major player in supply chains and global trade networks for the gold sector,” Al Safi said.

Coinciding with these efforts, MoE recently worked in collaboration with its federal, local, and private sector partners to keep up with the best practices and apply the latest international standards that are compatible with the requirements of the FATF to continue to combat money laundering risks and crimes.

The Due Diligence Regulations specifies the facilities under its control, which include companies working in the field of gold refining and refineries and the recycling of gold products inside and outside the country, falling under the precious metals and gemstones trade sectors, and categorised as Designated Non-Financial Business and Professions (DNFBP).

Al Safi explained that these facilities must follow all the regulations’ provisions and adhere to the requirements regarding their policies and procedures. They must consider the risks of financial crime in their relations with their suppliers, and communicate with the supervisory authority to find out the measures needed to be taken with regard to the responsible supply of gold from conflict-affected and high-risk areas.

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