AML Compliance for Precious Stones and Metals in the UAE

Listen to this Article

The trade in precious stones and precious metals plays a significant role in the UAE’s economy. Due to the high value and portability of these commodities the sector requires strong compliance measures to prevent misuse for financial crime. As a result businesses operating in this space are expected to maintain robust Anti Money Laundering controls.

Why the Sector Requires Enhanced Attention

Precious stones and metals are attractive for illicit activity because of their high value ease of transfer and ability to retain worth across borders. Transactions can involve large sums and complex supply chains making them vulnerable to misuse if proper controls are not in place.

In the UAE regulators expect businesses in this sector to understand their exposure and apply appropriate safeguards throughout their operations.

Customer Due Diligence in the Trade Environment

Effective customer due diligence is a cornerstone of compliance for precious stones and metals dealers. Businesses must establish the identity of customers, understand the nature of their activities and assess potential risks before entering into transactions.

Ongoing monitoring is equally important. Changes in purchasing behavior, transaction size or frequency may indicate elevated risk and should be reviewed promptly.

Transaction Monitoring and Record Keeping

Given the high value of transactions strong transaction monitoring practices are essential. Businesses should track transactions carefully and maintain clear records that allow for transparency and audit readiness.

Accurate record keeping supports internal oversight and enables timely reporting of suspicious activity when required. Records should be retained in line with regulatory expectations and be readily accessible for review.

Risk Based Controls in the Sector

A Risk Based Approach allows precious stones and metals businesses to focus compliance efforts where risks are highest. Higher value transactions, complex trade structures or unusual payment methods may warrant enhanced scrutiny.

By aligning controls with risk levels businesses can maintain efficiency while meeting compliance obligations.

Building a Culture of Compliance

Compliance in the precious stones and metals sector extends beyond systems and policies. Employee awareness and training play a critical role in identifying red flags and ensuring procedures are followed consistently.

A strong compliance culture helps protect businesses from reputational risk and supports the integrity of the UAE trade environment.

Conclusion

AML compliance for precious stones and metals is essential for safeguarding the sector and maintaining trust in the UAE marketplace. By implementing effective due diligence transaction monitoring and risk based controls businesses can operate confidently while supporting a secure and transparent trading ecosystem.

Disclaimer: Content posted is for informational and knowledge sharing purposes only, and is not intended to be a substitute for professional advice related to tax, finance or accounting. The view/interpretation of the publisher is based on the available Law, guidelines and information. Each reader should take due professional care before you act after reading the contents of that article/post. No warranty whatsoever is made that any of the articles are accurate and is not intended to provide, and should not be relied on for tax or accounting advice.