The Ministry of Economy publishes the new gold import policy on its website

In the context of strengthening the Ministry of Economy's continuous efforts to implement a national work system to counter money laundering and combat the financing of terrorism, the Ministry published the gold policy of due diligence regulations for the responsible supply of gold, through its website, in both Arabic and English.

This policy includes a set of controls and standards for the precious metals and gemstones (gold) trade sector, which were developed with a practical application that complies with the due diligence guidelines announced by the Organization for Economic Cooperation and Development (OECD), which are classified among the best global practices in this regard.

Safia Al-Safi, Director of the Anti-Money Laundering Department at the Ministry of Economy, explained 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 penalties and penalties. Administrative consequences of 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.

The policy indicates the obligation 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 to ensure good delivery and compliance in five steps: First:Establishing and implementing strong corporate governance management systems for the gold supply chains due diligence, through the acquisition of the company’s board of directors, or its equivalent, the necessary knowledge and experience, or the use of external consultants and experts to establish these systems, and the commitment of the controlled company or facility to appoint a relevant official Compliance and bears responsibility directly to the CEO (or equivalent) and has access to the Board of Directors (or equivalent), and is also responsible for the overall management of the gold supply chain due diligence process, and the company must provide a training program for all persons involved in this process, The establishment of a system of transparency and information sharing and control over it. The company establishes long-term relationships with suppliers and makes its suppliers adhere to supply chain policies in line with regulations. Due diligence must be exercised before establishing a new business relationship with the supplier, and care must be taken to ensure continuity in the implementation of this regard.

Second: Identifying and assessing risks in the supply chain, by conducting supply chain due diligence to identify potential risks, identifying risk indicators (high risk indicators in the gold supply chain), and continuous monitoring and reporting to senior management within the company or facility.

Third: Designing and implementing a management strategy to respond to identified risks by defining a risk control plan.

Fourth: 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.

Fifth: The company or facility subject to control is obligated to submit all due diligence audit reports in the supply chain to the Ministry of Economy on an annual basis, and approved 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 fulfill reporting obligations under these Politics.

Al-Safi stressed that the application of the policy of responsible supply of gold will contribute to raising the efficiency of the precious metals and gemstones trading sector (gold), in a way that enhances 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 relevant company officials 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 stated 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 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.

It is noteworthy that the Ministry of Economy announced the issuance of the due diligence regulations for the responsible supply of gold, during a media briefing it organized last July. The regulations can be viewed by clicking on the following link: Due diligence regulations for the responsible supply of gold |

Ministry of Economy - UAE /moec.gov.ae/ .

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