Ministry of Economy continues its efforts in implementing the UAE’s AML/CFT legislative and regulatory system in accordance with international best practices

The Ministry of Economy affirmed that it continues its efforts to implement the legislative and regulatory system for anti-money laundering in the country, in accordance with international best practices. In addition, the Ministry continues to monitor the Designated Non-Financial Businesses and Professions (DNFBP) sector in order to ensure its highest levels of compliance with the UAE’s AML/CFT legislation.

 The Ministry explained that the implementation of the policy on due diligence regulations for the responsible sourcing of gold in the country forms part of its role in monitoring the gold sector and the activities of precious metals and gemstones trade and industry. This is in line with the country’s adherence to the international standards adopted in this regard, the most important of which are the standards of the Organization for Economic Co-operation and Development (OECD).

 In this context, the Ministry pointed out that it has carried out a series of field inspection tours on activities related to precious metals and gemstones trade, following a clear mechanism for office and field inspection. As a result of these tours, the operations of 32 gold refineries in the local market, which accounts for five per cent of the country’s gold sector, have been temporarily suspended for three months starting July 24, and lasting until October 24, 2024.

 The Ministry explained that these refineries committed 256 offences, with eight violations per refinery, most notably the failure to adopt necessary measures and procedures to identify risks, failure to notify the Financial Intelligence Unit (FIU) of suspicious transactions where necessary, as well as the failure to verify customers’ databases and transactions against names on terrorism lists.

 H.E. Abdullah Ahmed Al Saleh, Undersecretary of the Ministry of Economy, said: “The UAE reaffirms its commitment to developing a comprehensive legislative and regulatory system for anti-money laundering and achieving the highest levels of compliance with the due diligence regulations for the responsible sourcing of gold.”

 He added: “The Ministry continues to strive to strengthen its supervisory role on various DNFBP sectors in the country, which include the operations of the precious metals and gemstones industry and their trade, activities of real estate agents, company service providers, and auditors’ operations. We are increasing inspection campaigns to ensure the highest levels of compliance with the UAE’s AML/CFT law.”

 In September 2022, the Ministry of Economy announced the Due Diligence Regulations for Responsible Sourcing of Gold, within a set of regulations and standards, aimed at establishing a strong national framework for countering money laundering and combatting the financing of terrorism in one of the important economic sectors – the gemstones and precious metals (gold) trade sector. The policy came into force in January 2023.