The UAE Ministry of Finance has temporarily suspended 32 gold refineries for failing to address money laundering and terrorism financing issues. The licences of these refineries, which represent 5% of the gold sector, are suspended for three months from 24 July to 24 October 2024.
This decision follows inspections by the authority into precious metal and gemstone activities to ensure high AML standards. The names of the refineries were not disclosed.
The ministry found 256 violations during these inspections, averaging eight per refinery. Notable violations included inadequate risk measures, failure to report suspicious transactions to the Financial Information Unit, and not cross-referencing customer data with terrorism watchlists.
Abdullah Ahmed Al Saleh from the Ministry of Economy emphasised the UAE’s commitment to enhancing its legislative and regulatory framework to combat money laundering and ensure compliance with global due diligence standards for the gold supply chain.
Additionally, the UAE central bank fined a local bank $1.6M (AED 5.8M) earlier this week for deficiencies in addressing money laundering and terrorism financing. The fine followed an examination revealing flaws in the bank’s AML/CFT policies.
The UAE was removed from the Financial Action Task Force (FATF) grey list in February, following a significant effort to tackle illicit financial flows through reforms such as increased financial investigations, enhanced international cooperation, and alignment of virtual asset regulation with global standards.
