She stressed the importance of companies' commitment to implementing the requirements of the "Regulations" during an audit period starting from January 1, 2023

"Economy" issues a new gold supply policy

  • The Ministry confirmed that it is ready to provide technical support to train company officials to understand and implement the new policy.

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  • Safia Al-Safi: “Implementing the policy of responsible supply of gold will raise the efficiency of the precious metals and gemstones trading sector.”

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The Ministry of Economy has published on its website, the gold policy of the due diligence regulations for the responsible supply of gold, as part of strengthening the ministry's continuous efforts to implement a national work system to counter money laundering and combat the financing of terrorism.

The ministry explained in a statement yesterday that the new policy, which it published in both Arabic and English, includes a set of controls and standards for the precious metals and gemstones (gold) trade sector, as it was developed with a practical application that complies with the due diligence guidelines announced by the Organization for Economic Cooperation and Development (OECD). , which ranks among the best international practices in this regard.

She added that the companies and establishments subject to the regulations must comply with the requirements of the regulation during an audit period starting from January 1, 2023, and they will also have to conduct an audit with the completion of 12 months from the beginning of the audit cycle, in addition to submitting reports to the Ministry within 90 days of completing the audit cycle.

Safia Al-Safi, Director of the Anti-Money Laundering Department at the Ministry of Economy, said that “the new policy aims to enhance the commitment of gold refinery companies and facilities to apply due diligence to gold supply chains, which contributes to protecting the interests of these companies that engage in bullion and gold-related activities before manufacturing from sanctions. And the administrative penalties for non-compliance in accordance with the provisions of the Executive Regulations of Federal Decree-Law No. (20) of 2018 in the matter of countering money laundering crimes and combating the financing of terrorism and illegal organizations.

Al-Safi stated that the new gold supply policy indicates the commitment of gold refiners to consider the risks of financial crime when managing their relationships with their suppliers and all other actors in the supply chain and ensuring good delivery and compliance in five steps.

She indicated that the first step is to establish and implement strong corporate governance management systems regarding due diligence for gold supply chains, by acquiring the company's board of directors, or its equivalent, with the necessary knowledge and experience, or using external consultants and experts to establish these systems.

Al-Safi stated that the second step focuses on identifying and evaluating risks in the supply chain, by performing a due diligence procedure for the supply chain to identify potential risks, identifying risk indicators (high-risk indicators in the gold supply chain), as well as continuous monitoring and reporting to senior management within company or establishment.

She explained that the third step is to design and implement a management strategy to respond to identified risks by defining a risk control plan, while the fourth step focuses on arranging an independent third-party audit for due diligence of the supply chain in accordance with the audit plan and annual audit principles and standards.

And she added that the fifth step confirms the commitment of the company or facility subject to control to submit all audit reports related to due diligence in the supply chain to the Ministry of Economy on an annual basis, and accredited members working in accordance with the Emirates Standard for Good Delivery of Gold are also obligated to submit reports prepared for accreditation purposes to the Ministry on an annual basis to meet reporting obligations under this policy.

Al-Safi stressed that implementing the policy of responsible supply of gold will raise the efficiency of the precious metals and gemstones (gold) trade sector, thus enhancing its competitiveness and its vital and important role in achieving sustainable economic development, and preserving the commercial and investment interests of the UAE.

She indicated the readiness of the Ministry of Economy's work team to provide all forms of technical support, including training officials of relevant companies to understand and implement the policy in the best and easiest ways and means, within the framework of the ministry's keenness to support the effectiveness and attractiveness of the business sector while achieving the required compliance in accordance with international best practices.

 The Ministry published the new policy on its website, in both Arabic and English.

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