Gold Sourcing Rules to be Embedded in Anti-Money Laundering Law

SEATTLE (Scrap Monster): The government of the United Arab Emirates (UAE) announced its decision to embed gold sourcing rules in anti-money laundering regulation requirements. This is to ensure that gold sourced by refineries are from responsible sources. Moreover, the refineries are required to undergo mandatory annual audits to ensure responsible bullion sourcing.

The government action is expected to clamp down on bullion trade linked to crime, human rights violations or conflicts. An investigation carried out in 2019 had revealed that the country had sourced billions of worth smuggled gold from Africa. The Financial Action Task Force (FATF)- the intergovernmental organization to combat money laundering, had been pressing for tightening of enforcement rules.

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The UAE Economy Ministry clarified that the Anti-Money Laundering (AML) Department will enforce responsible sourcing procedures across all refineries in the UAE. All the refineries would have to undergo a responsible sourcing audit. There would be penalty for those refineries that do not meet the prescribed requirements, the details of which will be published later, the Ministry added.

The decision is likely to stem the flow of illegal gold to one of the world’s major hubs of gold trading.