UAE’s new laws on gold imports: Up to Dh5 million fine for violators

On Thursday, 21^st July 2022, the UAE’s Ministry of Economy announced a new policy regarding the responsible sourcing of gold for importers. Refiners and violators could face a penalty of up to Dh5 million.

The new regulations for responsible sourcing of gold will apply to the companies working in the field of gold refining, recycling of gold products inside and outside the country, precious metals and gemstones trade sector, which are classified as designated non-financial businesses and professions (DNFBPs).

“The new law will apply to gold refineries, importers, those dealing with scrap gold and gold mining. This rule will apply to companies in the UAE mainland and free zones as part of UAE’s efforts to implement all Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) regimes,” said Safiya Al Safi, director of the Anti-Money Laundering Department, Ministry of Economy.

“The new law will apply to gold refineries, importers, those dealing with scrap gold and gold mining. This rule will apply to companies in the UAE mainland and free zones as part of UAE’s efforts to implement all Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) regime,” said the director of the Anti-Money Laundering Department, Ministry of Economy.

The regulations included the compliance of regulated establishments with a set of policies to manage risks while importing gold from conflict-affected or high-risk areas following a 5-step framework and including:

Create an effective governance system
Risk assessment in the supply chain
Mitigation of identified risks
Independent third-party review
Periodic reports

To strengthen the gold supply system, the regulations set several supportive steps to reduce the severity of risks. These include:

Provision of a training programme for all individuals involved in the due diligence process
Submission of all the audited reports on an annual basis
Appointment of an employee to handle compliance tasks
Appoint auditors following international best standards
The auditor must be well-acquainted with all due diligence regulations.

XB4 provide all compliance requirement for gold traders and refiners, including independent audit and review reporting.

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