UAE Shuts Down 32 Gold Mines in Temporary Move to Combat Money Laundering

The United Arab Emirates (UAE) has announced the temporary closure of 32 gold mines as part of a broader crackdown on money laundering within its gold sector. These facilities, which account for approximately 5% of the UAE’s gold industry, will cease operations from July 24 until October 24, according to a statement from the Ministry of Economy.

The Ministry revealed that the closures were prompted by a series of violations committed by the refineries. In total, 256 infractions were recorded, with each refinery responsible for eight violations. The Ministry highlighted several key violations, including the failure to implement necessary measures to identify financial crime risks, the failure to report suspicious transactions to the UAE’s Financial Information Unit, and the failure to cross-check customer and transaction databases against names listed on terrorism watchlists.

This move is part of the UAE’s efforts to enhance its international reputation, amid growing concerns that the country has been overlooking issues related to money laundering and gold smuggling. A report published in May by the development organization Swissaid estimated that in 2022, two-thirds of the gold imported into the UAE from Africa had been smuggled, with much of it subsequently re-exported to other countries. Switzerland, recognized as the world’s gold refining hub, has previously expressed concerns about illicit bullion being shipped from the UAE.

Abdullah Ahmed Al Saleh, the UAE’s Undersecretary of the Ministry of Economy, emphasized the country’s dedication to tightening its regulatory framework, stating: “The UAE affirms its firm commitment to developing a regulatory system to combat money laundering.” He also stressed the UAE’s focus on “achieving the highest levels of compliance with due diligence regulations for the responsible gold supply chain.”

By fLEXI tEAM