The decision of the United Arab Emirates (UAE) government to introduce fresh regulations for responsible sourcing of gold is expected to have a positive impact on the import of the metal into India.
Sources said the UAE’s Ministry of Economy had decided to implement stronger rules to prevent money laundering and to combat financing of terrorism. The new measures have been adopted anticipating that gold smuggling would lead to a parallel economy and could be used to finance terrorist activities, with global economies opening up after the COVID-19 pandemic.
The regulations consist of a set of policies to mitigate risks in the process of importing gold from conflict-affected and high-risk areas. The UAE has been supporting the activities of the Financial Action Task Force, an intergovernmental organisation to develop policies to combat money laundering and terrorism financing, according to the the Emirates New Agency.
