The United Arab Emirates (UAE) is cracking down on money laundering in its gold sector by temporarily suspending operations at 32 gold refineries. This move aims to combat illicit activities such as smuggling and unregulated gold flows. The UAE is a key player in the global gold-trading market, with thousands of traders operating in the precious metals industry.
The suspended refineries, which represent 5% of the UAE’s gold sector, will be shut down until October 24th for violating anti-money laundering regulations. The crackdown follows a study revealing the UAE as a top destination for gold smuggled out of Africa. Suspicious activity reports in the gold sector have surged, indicating a need for tighter regulation.
Notably, the UAE may have been involved in a major gold heist in Canada, where stolen gold valued at over US$20 million was smuggled overseas. The Ministry of Economy emphasizes that these suspensions are part of ongoing efforts to improve regulatory oversight and adhere to international anti-financial crime standards.