Emirates Gold Refinery Is Suspended From The UAE’s ‘Good Delivery List’

(CTN News) – Emirates Gold DMCC has been suspended from the UAE’s approved “good delivery list”, a certification scheme for responsible sourcing.

Emirates Gold, which has been operating for 30 years, was temporarily suspended on Friday, according to the government website.

In November 2021, the UAE Good Delivery Standard for gold was introduced, a voluntary national standard designed to encourage ideal specifications in the sector.

In order to be included on the list, refineries must meet anti-money laundering and responsible sourcing standards.

According to Bloomberg, the bullion committee, chaired by the Economy Ministry, removed the refinery because its owners are suspected of money laundering.

Emirates Gold’s affiliate membership has been suspended by the London Bullion Market Association because of a recent “due diligence review”.

According to the regulator, LBMA sets standards and maintains trust in the precious metals market.

“We take any violation of our rules very seriously as a condition of continued membership in the LBMA. We, therefore, take very seriously any breach of our rules.”

Emirates Gold is scheduled to be stripped of its accreditation by the UAE government, which took over the gold trade in 2021.

After Mohamad Shakarchi’s death in 2022, Emirates Gold changed ownership.

According to the Paris-based Financial Action Task Force, the UAE is proactively implementing an anti-money laundering and counter-terrorism financing action plan.

To combat money laundering and terrorism funding, the Emirates has made considerable efforts.

An anti-money laundering and counter-terrorism financing law was passed in 2018 and an Executive Office for Anti-Money Laundering and Counter-Terrorism Financing was formed in 2021.

A total of Dh115 million ($31.3 million) in fines were issued by the UAE in the first quarter of this year to combat money laundering. Last year, Dh76 million was issued.

In the first three months of this year, 76 entities were fined 161 times. During November 2022 to February 2023, frozen assets seized exceeded Dh925 million in value.

The UAE introduced new regulations on gold imports in January to combat money laundering and the financing of terrorism and illegal organizations.

Gold importers and refiners are now required to source gold responsibly. The fines for violating the regulations range from Dh50,000 to Dh5 million ($13,623 to $1.36 million).

Businesses that are regulated must comply with the new provisions and enforce them. In addition to refineries, these companies recycle gold products inside and outside the country.

A federal gold trading platform will be set up, and the Emirates Gold Bullion Committee will be established to unify national efforts to enhance oversight of the sector.

A list of affected entities is provided in the regulations, including companies that refine and recycle gold products both inside and outside the country, businesses associated with precious metals and gemstones, as well as businesses classified as non-financial businesses.

As a result of the rules, these companies must adapt their policies and procedures to prevent the misuse of gold imports for money laundering and other financial crimes.

When supplying gold from conflict-affected and high-risk areas, import centres must follow a five-step framework for risk management.

As part of the framework, a governance system must be established, in addition to risk assessment within the supply chain, mitigation of identified risks, independent third-party reviews, and periodic reporting.

Compliance tasks must be handled by an in-house officer who is directly responsible for due diligence.

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