Date: August 09, 2024
Source: https://www.thenationalnews.com/
The UAE has intensified its crackdown on financial crime by suspending 32 local gold refineries for three months due to anti-money laundering (AML) violations. The Ministry of Economy found the refineries had committed 256 violations, including failing to identify money laundering risks and report suspicious transactions.
The suspensions, which began on July 24th, affect 5% of the country’s gold sector. While the refineries involved have not been named, the move highlights the UAE’s determination to clean up its gold industry, which has faced scrutiny as a potential pathway for illicit funds.
The UAE has made significant strides in strengthening its AML regime in recent years, including being removed from the FATF grey list. The country has imposed substantial fines on financial institutions for AML/CFT violations and increased the number of suspicious activity reports filed.
While the suspensions may cause short-term disruptions, experts believe the long-term impact on the gold market will be limited. The move is seen as a necessary step to enhance the industry’s reputation and attract responsible investors.
Key points:
- The UAE has suspended 32 gold refineries for AML violations.
- This is part of a broader crackdown on financial crime.
- The UAE has made significant progress in strengthening its AML regime.
- Experts believe the impact on the gold market will be short-term.
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