On gold imports, UAE to bring tough due diligence rules on responsible sourcing

On gold imports, UAE to bring tough due diligence rules on responsible sourcing

Dubai: The UAE is bringing in new rules related to the sourcing of gold into the country, further cutting down any gaps that existed. The laws come into full effect January next.

The regulations - brought out by the Ministry of Economy - specify the quantity of supply of gold for regulated establishments. These include companies operating refineries and the recycling of gold products inside and outside the country. These come under the precious metals and gemstones trade sector, which is classified as DNFBP (Designated Non-Financial Business and Professions).

The regulated business establishments must comply with all provisions of the new regulation and implement these in their policies and procedures. They are also committed to de-risk the possibility of financial crime in their relations with their suppliers. And they have communicate with the supervisory authority to find out the measures to be taken concerning the responsible supply of gold from conflict-affected and high-risk areas.

Law takes effect January

The Due Diligence Regulations, which will come into effect in January 2023 has been drafted in accordance with guidance from the Organization for Economic Co-operation and Development (OECD) and its corresponding protocol for gold. These regulations are set to promote the competitiveness of the UAE’s business