UAE to audit all gold refineries in crackdown on illicit trade

This should raise standards in the UAE, one of the world's biggest bullion trade hubs, but may also shift flows of gold linked to crime or human rights abuses to other countries like Africa where the number of gold refineries is growing rapidly, say industry members.
Organisations including the Financial Action Task Force (FATF), an intergovernmental anti-money laundering monitor, are pressing the country to tighten rules and enforcement. UAE has said doing so is a national priority.
According to the UAE's Economy Ministry, the UAE Good Delivery Standard would require refiners to properly scrutinize suppliers and prove to outside auditors they have done so. The ministry said its goal was to bring the whole industry in line with responsible sourcing standards. It declined to comment further before an announcement at a precious metals industry conference in Dubai later this month.
UAE says it had taken numerous measures to combat illicit trading, including requirements for firms to register with anti-money laundering authorities and declare large cash transactions. Tyler Gillard, who advises governments and companies on responsible sourcing at the Organisation for Economic Co-operation and Development (OECD) said: "This is the most significant thing the UAE government have done (to stop unethical trade). But illicit trading will not disappear. It's like squeezing a balloon. There's still enough gaps and opportunities in other countries for gold to enter the market."

Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough&Polished