On 18 November 2021, the Ministry of Economy launched the UAE Good Delivery (UAEGD) guidelines, which will eventually take over from the existing Dubai Good Delivery (DGD) guidelines. This is in accordance with the Federal Gold Policy, which was announced by the UAE Government Cabinet Resolution No. (2/16) of 2020 on the Establishment of the Emirates Good Delivery and Emirates Bullion Market Committee, and which will replace the existing Dubai Good Delivery (DGD) guidelines.
In addition to being chaired by the Ministry of Economy, the Emirates Bullion Market Committee (EBC) will serve as the governing body for all activities undertaken under the Federal Gold Policy, which includes the UAEGD. The UAEGD will be governed in compliance with the UAE Good Delivery Accreditation Rules established by the Emirates Bullion Market Committee.
Enhancing Responsible Gold Supply Chain: UAE's Commitment to Economic Reputation
In the pursuit of establishing a responsible and transparent gold supply chain, the United Arab Emirates (UAE) has taken significant strides to ensure the highest standards of due diligence. This article delves into the UAE Ministry of Economy’s (MoE) review of the due diligence guidelines, their role in enhancing the national economy’s reputation, and the impact on the gold sector.
Through a robust framework aligned with international best practices, the UAE aims to solidify its position as a global hub for gold trade while contributing to the overall well-being of the national economy.
The MoE's Due Diligence Guidelines
The Ministry of Economy’s due diligence guidelines for responsible sourcing of gold exemplify the UAE’s commitment to combatting money laundering, terrorism financing, and the financing of illegal organizations.
These guidelines were introduced in line with the Federal Decree-Law No. 20 of 2018, which addresses the aforementioned issues and aligns the UAE with international regulatory frameworks. By implementing these guidelines, the UAE aims to ensure that gold refineries operating within the country adhere to rigorous due diligence practices, commencing from January of the following year.
Advancing International Standards and Best Practices
The UAE’s focus on enhancing and governing the gold trade aligns with its aspiration to be at the forefront of international standards and best practices. Notably, the adoption of the Federal Policy for the Gold Sector in December 2020 stands as a significant milestone in this pursuit. The policy emphasizes the importance of unifying national efforts to enhance the governance of the gold sector, with active participation from the private sector. It led to the establishment of the Emirates Gold Bullion Committee and the launch of a federal platform for gold trading.
To further reinforce the UAE’s commitment to excellence, the country introduced the UAE Good Delivery Standard for Gold in November 2021. This voluntary national standard aims to establish an optimal framework for the delivery and circulation of gold, setting the stage for industry-wide best practices.
The Role of Due Diligence in Responsible Gold Sourcing
Safeguarding the integrity of the gold supply chain is a key objective of the MoE’s due diligence guidelines. These guidelines are meticulously crafted to align with international best practices and recommendations of the Financial Action Task Force (FATF).
By following these guidelines, gold refineries operating in the UAE will contribute to a responsible gold supply chain that combats money laundering and terrorism financing. The guidelines also ensure compliance with the Organization for Economic Cooperation and Development (OECD) directives concerning gold.
Strengthening the National Economy's Reputation
Adhering to due diligence guidelines not only ensures the responsible sourcing of gold but also reinforces the UAE’s legislative framework against money laundering and terrorism financing. The guidelines are designed to align with the directives of the OECD and its annex related to gold, further bolstering the UAE’s regional and global reputation.
The UAE’s commitment to maintaining a robust and transparent gold supply chain enhances the competitiveness of the national business and investment environment. By adhering to international standards and best practices, the UAE strengthens its position as a major player in supply chains and global trade networks for the gold sector. This, in turn, fosters an environment conducive to attracting foreign investment, promoting economic growth, and establishing the UAE as a trusted partner in the international market.
Eligibility Criteria for UAE Good Delivery Accreditation
- The refinery must have a minimum of 3 years of continuous operations
- A net worth of at least AED 55.1 million (as per the latest audited financials)
- The refinery must produce at least 10 tons of gold annually
- Submission of a Review Report demonstrating compliance with the Rules for Risk-Based Due Diligence in the Gold Supply Chain (RBDG)
Conclusion
The UAE Ministry of Economy’s review of due diligence guidelines for responsible sourcing of gold reflects the country’s unwavering commitment to establishing a responsible and transparent gold supply chain. By implementing these guidelines, the UAE safeguards against money laundering, terrorism financing, and the financing of illegal organizations. Furthermore, the adherence to international best practices strengthens the UAE’s position as a leading global hub for gold trade, contributing to the enhancement of the national economy’s reputation.
UAE Good Delivery Accreditation Application
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