Ministry of Economy Enhances Implementation of UAE’s Anti-Money laundering Regulations

The Ministry of Economy has affirmed its ongoing commitment to implementing the legislative and regulatory framework for anti-money laundering (AML) in the country, in accordance with international best practices.

Furthermore, the Ministry continues to monitor the Designated Non-Financial Businesses and Professions (DNFBP) sector to ensure the highest levels of compliance with the UAE’s AML/CFT legislation.

The Ministry explained that the implementation of the due diligence regulations for the responsible sourcing of gold is part of its role in overseeing the gold sector and the activities of the precious metals and gemstones trade and industry.

This is in line with the country's adherence to international standards, notably those of the Organisation for Economic Co-operation and Development (OECD).

In this context, the Ministry noted that it has conducted a series of field inspection tours related to the trade of precious metals and gemstones, following a clear mechanism for both office and field inspections.

As a result of these inspections, operations at 32 gold refineries in the local market, representing five per cent of the country's gold sector, have been temporarily suspended for three months, from July 24 to October 24, 2024.

The Ministry reported that these refineries committed 256 offences, averaging eight violations per refinery.

The most notable offences included the failure to adopt necessary measures and procedures to identify risks, failure to notify the Financial Intelligence Unit (FIU) of suspicious transactions where necessary, and the failure to verify customers' databases and transactions against names on terrorism lists.

Abdullah Ahmed Al Saleh, Undersecretary of the Ministry of Economy, stated: “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 across various DNFBP sectors in the country, which include the operations of the precious metals and gemstones industry and their trade, the activities of real estate agents, company service providers, and auditors.

We are intensifying inspection campaigns to ensure the highest levels of compliance with the UAE’s AML/CFT law.”

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