Includes 28 gold refineries in the country

“Economy”: January 2023.. Starting the mandatory application of the “responsible supply of gold” regulations

During the media briefing of the Ministry of Economy in Dubai yesterday.

Photography: Ahmed Ardeti

The Ministry of Economy announced, in a media briefing, held at its headquarters in Dubai, yesterday, the details of the new system of due diligence regulations for the “responsible supply of gold” process, confirming its mandatory application as of the beginning of January 2023.

Mandatory application

The Director of the Anti-Money Laundering Department at the Ministry of Economy, Safia Al-Safi, said that the state is completing its efforts to enhance the good delivery system for gold, by issuing the system of “due diligence regulations for the responsible supply of gold,” which will be applied compulsorily to all gold refineries operating in the country starting from January 2023. Taking into account the best international practices, and the findings and recommendations of the Financial Action Task Force (FATF).

She stressed that the new regulations consolidate the UAE's position as a major player in the supply chains and global trade paths for the gold sector, and support the legislative system to counter money laundering and combat terrorism.

She added that the Ministry of Economy is currently working on awareness campaigns about these new regulations, in preparation for their mandatory implementation, as they will include about 28 gold refineries in the UAE.

Al-Safi confirmed that the new regulations will enhance the exports of gold products from the country to the world markets, with the compatibility of these regulations with the global policies of supply, pointing out that the gold trade represents about 28% of the country's total foreign trade.

Subject Establishments

Al-Safi explained that the regulations identified the facilities subject to control, and they include: companies operating in the field of gold refining and refineries, and recycling gold products inside and outside the country, which fall under the precious metals and gemstones trade sector, which in turn are classified as specific non-financial businesses and professions.

She pointed out that these facilities comply with all provisions of the regulations, implement the requirements of their policies and procedures, are committed to considering the risks of financial crime in their relations with their suppliers, and communicate with the supervisory authority to find out the measures to be taken with regard to the “responsible supply of gold” from areas affected by conflicts and severe areas The risk, in light of the legislative controls and frameworks for countering money laundering and combating terrorist financing.

Risk Management

It indicated that the regulations included the commitment of the controlled facilities to a set of risk management policies in the process of importing gold from conflict-affected or high-risk areas, which follow the five-step framework, including: establishing an effective governance system, assessing risks in the supply chain, mitigating Identified risks, independent third party review, and periodic reporting.

She stated that the regulations also include the importance of appointing an employee within the controlled facilities, who undertakes the tasks of compliance, and these facilities are obligated to submit all audit reports stipulated in the regulations to the Ministry on an annual basis, while the accredited members working in accordance with the standard of good delivery of gold in the UAE are obligated to submit reports Prepared, for the purposes of accreditation to the Ministry on an annual basis, in order to fulfill reporting obligations under these regulations.

Al-Safi stated that the regulations included the provision of a training program for all persons involved in the due diligence process for the gold supply chain, indicating that the ministry had set a set of conditions for selecting accredited auditors, the most important of which is that the auditor be aware of all the due diligence regulations entrusted to the gold supply process.

safiya net:

"The new regulations establish the UAE's position as a major player in supply chains and global trade paths for the gold sector."

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