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The UAE Ministry of Economy Revises Anti-Money Laundering Compliance Systems

The UAE Ministry of Economy Revises Anti-Money Laundering Compliance Systems

Businesses dealing in gold, silver, and other precious metals must now comply with the Anti-Money Laundering and Counter-Terrorism Financing Law of the United Arab Emirates (AML-CFT). This is as per a circular that dealers in precious metals and stones Licensed in the UAE received on June 2, 2021.

When precious metals or precious stone dealers qualify as DNFBPs as specified in Cabinet Decision No. 10) of 2019, Concerning the Implementation Regulation of Decree-Law No. (20) of 2018, they must comply with AML / CFT responsibilities.

Likewise, as per According to the Cabinet Decision, DPMS qualify as DNFBP if they conduct any single or connected multiple transactions with a monetary worth of AED 55,000 or more. Transactions with the same customer or transactions that appear to be planned to evade the stated threshold may be included.

Dealers in precious metals and precious stones (DPMS) are governed by the Ministry of Economy as Designated Non-Financial Business and Professions (DNFBPs). Because of the inherent danger connected with the business, Gold and Precious Metal dealers must take certain, pre-defined actions to guarantee AML compliance and avoid the Ministry of Economy’s harsh penalties.

Due to the high-risk component, the DPMS must do frequent client checks, monitor significant transactions, and create a sophisticated AML compliance system within their company to ensure AML compliance.

Moreover, because recognizing risks and implementing preventative measures is difficult but necessary, gold dealers will benefit from the assistance of AML experts in Dubai. In order to maintain AML compliance and avoid AML fines in the UAE, below is a complete guidance for the DPMS.