The Ministry of Economy of the United Arab Emirates (UAE) has issued Due Diligence Regulations for Responsible Sourcing of Gold, as part of its AML/CFT law. These guidelines aim to enhance and regulate gold trade in accordance with international Financial Action Task Force (FATF) standards. It is mandatory for all gold refineries and gold recycling companies in the UAE to comply with the guidelines from January 2023. The implementation of these guidelines will help the UAE compete in the international gold market.
All stakeholders required to follow these guidelines must consider the ML/TF risks posed by their suppliers. They must also take appropriate measures to ensure responsible supply of gold from volatile and high-risk jurisdictions. This means adhering to 5 steps: effective governance, supply chain risk assessment, risk mitigation, independent third-party review, and reporting.
All concerned companies must also hire an employee tasked with ensuring compliance and due diligence for the gold supply chain. They must also submit mandatory annual audit reports. Furthermore, all staff responsible for due diligence for the gold supply chain must receive adequate training. Equally important is to ensure that the auditors are aware of the due diligence regulations related to gold supply.
Source: UAE Ministry of Economy