Page 21 - Bullion World Volume 3 Issue 10 October 2023

Bullion World | Volume 3 | Issue 10 | October 2023

UAE’s Big Leap on Responsible

Sourcing of Gold

Ms Maryam Al Hashemi, Director, Precious Metals and Stones, DMCC Authority

The United Arab Emirates has a long history of gold trading and has become
one of the world's leading gold trading hubs. To streamline the gold supply
chain, the Emirates Bullion Market Committee (EBC) was established in 2020.
This led to the creation of the UAE Good Delivery Rules for Risk-Based Due
Diligence in the gold supply chain, effective from February 2022, aligned with
OECD guidelines. The EBC, chaired by the Minister of State for Foreign Trade,
oversees these standards.

The United Arab Emirates has had a Committee include office bearers
thriving gold market for centuries. Its from various Federal and local
rise in more recent years as one of government departments while the
the world’s largest gold trading hubs Executive Office of the EBC reports
has heralded an equivalent need to to the Executive Committee and
streamline the flow of this precious administers the standards. Ms Maryam Al Hashem
commodity into the country.
Efforts have been made to curtail
The launch of the Emirates Bullion the possibility of a two-tier market
Market Committee (EBC) in 2020 when it comes to sourcing practices.
marked the first major step to In September 2022, the UAE’s
achieving that. A Governance of entire gold refining sector was
good delivery standards under made to adhere to due diligence
12 months from the start of the cycle.
the Federal Authority under the regulations for responsible sourcing, The reports will then be submitted
Ministry of Economy eventually led making it one of several mandatory
to the Ministry of Economy within 90
to the current UAE Good Delivery requirements under AML / CFT days of the completion of the review
Rules for Risk-Based Due Diligence legislation. This applies to the entire
cycle. Any non-compliance could
in the gold supply chain and precious metals sector irrespective result in penalties up to suspension
UAEGD Accreditation Rules. This of their activity ranging from
of licenses. At the surface this
is a voluntary standard that refiners manufacturing, retailing, trading, and is a serious and efficient new
adhere to that covers both the quality wholesale trading. The regulations
framework with clear procedures.
and technical specification that came consist of a set of policies and At a deeper level, this signals a
into effect in February 2022. Crucially, procedures to identify and mitigate
major step forward by the UAE for
the rules are aligned with the risks in the process of importing gold responsible sourcing of gold. These
OECD’s due diligence guidance for from conflict-affected and high-risk
developments in essence ensure that
responsible supply chains of minerals areas. Again, this follows guidance all refiners operating in the UAE must
from conflict-affected and high-risk issued by the OECD, namely the five
be certified by UAEGD or operate
areas. steps framework. in accordance with due diligence
regulations for responsible sourcing
The new standard has a palpably Refiners under the purview of this set by the Ministry of Economy. In
stronger and more streamlined regulation have little choice but to
the long run the realistic expectation
governance structure. The Emirates follow the requirements from the audit is that it will carve open new gold
Bullion Committee (EBC) is Chaired period starting from 1 Jan 2023.
trade opportunities alongside wider
by the Minister of State for Foreign As part of this they must undertake acceptance globally.
Trade. Members of the Executive third-party reviews upon completing

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