Gold souq compliance drive intensifies

Dubai’s Gold Souq has come under a sharper regulatory spotlight after Abdulla bin Touq Al Marri, Minister of Economy and Tourism, led an inspection tour to assess whether merchants are meeting rules designed to prevent money laundering, terrorism financing and proliferation financing in the precious metals trade.

The visit placed one of Dubai’s most prominent retail and wholesale gold hubs at the centre of the UAE’s wider push to strengthen financial-crime controls before another international assessment of its anti-money-laundering framework. Al Marri reviewed compliance practices among traders and jewellers, with a focus on customer due diligence, transaction monitoring, accurate record-keeping, screening procedures and the ability of businesses to detect suspicious patterns in high-value dealings.

“We want to make sure that the gold and jewellery market has the highest level of compliance,” Al Marri said during the tour. He said the visit was intended to ensure that “accessibility and accurate information are in place”, signalling that enforcement is being paired with direct engagement with merchants.

The Ministry of Economy and Tourism has also moved to establish an anti-money-laundering task force for the gold and jewellery sector, reinforcing supervision of dealers in precious metals and stones. The initiative is aimed at ensuring that jewellers, refiners, wholesalers and traders operate under the same risk-based compliance discipline expected of other regulated businesses.

Al Marri delivered a firm message to market participants, saying there is “no tolerance for money laundering” in the UAE and that illicit finance has no place in the economy. Addressing gold traders, he described them as contributors to the country’s economic development, while making clear that their role carries responsibilities beyond commercial activity.

Gold and jewellery businesses are classified within Designated Non-Financial Businesses and Professions, a category subject to anti-money-laundering, counter-terrorism-financing and counter-proliferation-financing obligations. Dealers must apply controls when transactions, or linked transactions, reach AED55,000 or more. The rules also require scrutiny where payments appear to be structured to avoid thresholds, where cash or cash equivalents are used, or where customer behaviour raises concerns.

Regulatory expectations now extend beyond basic identity checks. Dealers are expected to appoint qualified compliance officers, conduct business-wide risk assessments, maintain written policies, train staff, screen customers and counterparties, monitor transactions and report suspicious activity. They must also apply targeted financial sanctions checks linked to United Nations Security Council resolutions.

The inspection comes as the UAE seeks to preserve the gains made after its removal from the Financial Action Task Force grey list in February 2024. That decision followed a sustained campaign to address weaknesses in supervision, enforcement, beneficial ownership transparency and suspicious transaction reporting. The gold sector remains important because precious metals can be used to move value across borders, obscure ownership and convert illicit proceeds into assets that are easy to trade.

Dubai’s position in the global gold market gives the compliance drive added significance. Gold traded across the country’s markets reached about AED683 billion in 2024, equivalent to roughly $186 billion. The gold, precious metals and gemstone sector includes more than 6,200 companies and 53 licensed refineries, making regulatory consistency essential for international confidence.

Authorities have introduced several measures to raise standards in the sector, including a federal policy for the gold market, the UAE Good Delivery Standard for Gold, the Emirates Bullion Market Committee, a database for corporate and individual traders, a federal gold trading platform and due diligence rules for responsible sourcing. These measures are designed to improve traceability, reduce exposure to illicit flows and align the market with global best practice.

Compliance challenges remain significant because the gold supply chain is complex. Risks can arise at the mining, refining, wholesale, retail and export stages, particularly where origin, beneficial ownership, payment methods or transaction purpose are unclear. Regulators are placing emphasis on identifying whether gold has been sourced responsibly, whether customers match their declared business profile and whether transactions are consistent with normal market behaviour.

For merchants in the Gold Souq, the inspection signals that supervision is becoming more visible and sector-specific. Smaller retailers, family-owned shops and larger jewellery groups are being pushed to maintain documented controls that can withstand inspection, not merely informal knowledge of customers built through long-standing trade relationships.