UAE suspends 32 gold refineries in money-laundering crackdown
The United Arab Emirates temporarily suspended activities at 32 gold refineries as part of an effort to curb money laundering.
The government is “intensifying inspection campaigns” at plants as it cracks down on financial crimes, according to a statement from the Ministry of Economy. The shuttered facilities — which represent about 5% of the UAE’s gold sector — will be halted until Oct. 24.
The UAE is cleaning up its gold sector as part of a broader effort to rehabilitate its financial reputation, following concerns that it was turning a blind eye to money laundering and gold smuggling.
A report by development organization Swissaid in May estimated that two-thirds of the gold imported into the UAE from Africa in 2022 was smuggled, with much of it then re-exported to other countries. Switzerland, the world’s gold refining hub, has previously expressed concern about illicit bullion being shipped from the UAE.
Gold smuggling is an age-old practice, but it’s become all the more lucrative as the price of bullion has soared to record highs this year. Prices peaked at $2,483.73 an ounce in mid-July, supported by central bank buying, surging demand in China, geopolitical tensions and expectations of US monetary easing.
