Due Diligence Regulations for Responsible Sourcing of Gold

Due Diligence Regulations for Responsible Sourcing of Gold UAE

New Due Diligence Regulations for Responsible Sourcing of Gold by the Ministry of Economy UAE

Ministry of Economy of UAE has recently released Due Diligence Regulations for Responsible Sourcing of Gold, as part of its ongoing efforts to mitigating the identified risks in Precious Metals & Precious Stones sector (DPMS) sector. Due Diligence Regulations establishes the measures adopted by refiners with regard to the responsible sourcing of gold.

Gold mining play an important role in the economies of countries producing and it has high potential for developing nations as well. Hence, it also poses immense risks with regard to gold originated from Conflict-Affected and High-Risk Areas (CAHRAs), undermining the development of the nation and its law.
The regulations consist of policies and procedures to identify and mitigate risks in the process of importing gold from conflict-affected and high-risk areas.

The framework involves the following 5 steps:

  1. Establishment of a strong company management system
  2. Identification and assessment of risk in the supply chain
  3. Designing and implementation of a strategy to respond to identified risks
  4. Carrying out independent third-party reviews of the refiner’s due diligence practices
  5. Periodic reporting

These regulations apply to all Regulated Entities established and/or operating in the territory of the UAE and all commercial free zones and the members of their board of directors, management, and employees.

Specifically, and without prejudice to the definition of a DNFBP, they are applicable to all such natural and legal persons involved in the activity of Refining.

This regulation forms part of the existing AML/CFT requirements set out in the AML/CFT legislation.