Editor’s Note
The UAE has temporarily suspended Emirates Gold DMCC, a major Dubai-based refinery, from its responsible sourcing certification scheme. The move underscores ongoing regulatory scrutiny in the global gold trade.
The United Arab Emirates has suspended one of its largest gold refineries, Emirates Gold DMCC, from its approved Good Delivery list, a certification scheme that sets rules for responsible sourcing. The suspension of Dubai-based Emirates Gold, which has been operating for 30 years, is temporary and took effect from July 7, the government website showed on Friday.
The country unveiled the UAE Good Delivery Standard for Gold in November 2021, a voluntary national initiative for the sector to establish a framework favoring ideal specifications. Refineries must comply with standards against money laundering and responsible sourcing to be included on the list, which grants them access to the nation’s gold market.
The Bullion Committee, chaired by the Ministry of Economy, withdrew the refinery due to concerns that its owners were connected with alleged money launderers, the Bloomberg news agency reported.
The London Bullion Market Association (LBMA), which regulates the world’s largest gold trading center, did the same on Friday by suspending Emirates Gold’s affiliated membership, citing a recent “due diligence review.”
The UAE government, which assumed oversight of the gold trade in 2021, will review the situation at the end of the year and make a final decision on whether to strip Emirates Gold of its accreditation, Bloomberg reported. Emirates Gold, which was established by Swiss citizen Mohamad Shakarchi, changed ownership in 2022, a year after his death.
The UAE is working proactively to implement an action plan from the Financial Action Task Force (FATF) to strengthen the effectiveness of its regime against money laundering and the financing of terrorism, said the Paris-based body.
In 2021, the UAE founded an Executive Office for Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) after passing an anti-money laundering and counter-terrorism financing law in 2018. The country issued fines exceeding 115 million dirhams ($31.3 million) in the first quarter of the year to combat money laundering. This figure represents a sharp increase from the 76 million in sanctions last year.
In January, the UAE introduced a new set of regulations on gold imports in line with international standards aimed at preventing money laundering, terrorism financing, and illegal organizations. The new policy governs the responsible sourcing of gold by precious metals importers and refiners. Violators face fines ranging from 50,000 to 5 million dirhams ($13,623 to $1.36 million).
Regulated businesses will be required to comply with and enforce the new provisions. These include companies operating refineries and those involved in the recycling of gold products within and outside the country.
The initiative includes establishing the UAE Gold Bullion Committee to unify national efforts to improve sector oversight, with the participation of private companies, and creating a federal platform for gold trading.
The guidelines require the appointment of an internal officer to handle compliance tasks, assuming direct responsibility for due diligence.
