[ad_1]
Moves to prevent money laundering and terrorist financing may affect gold imports to India
Moves to prevent money laundering and terrorist financing may affect gold imports to India
The decision by the government of the United Arab Emirates (UAE) to introduce new regulations for responsible gold sourcing is expected to have a positive impact on India’s metal imports.
The UAE Ministry of Economy has decided to implement stronger rules to prevent money laundering and combat the financing of terrorism, sources said. New measures have been taken and gold smuggling is expected to lead to a parallel economy and can be used to finance terror, with the global economy opening up after the COVID-19 pandemic.
The regulation includes a series of policies to mitigate risks in the process of importing gold from conflict-affected and high-risk areas. According to the Emirates News Agency, the UAE has been supporting the activities of the Financial Action Task Force, an intergovernmental organization that aims to develop policies to combat money laundering and terrorist financing.
However, Indian law enforcement agencies are unsure whether the new policy will reduce gold smuggling through Indian airports. However, some regulations in the UAE are considered a key hub for smuggling rings and will curb illegal activities, sources said. India’s Comprehensive Economic Partnership Agreement with the UAE has failed to curb gold smuggling.
after switzerland
India mainly imports gold from Switzerland, the United Arab Emirates and South Africa. Global purchases of imported gold in 2021 will be $55.8 billion. The country was second on last year’s list of the five largest gold importers, behind Switzerland.
By the way, Calicut International Airport remains the second gateway for gold smuggling in the country, after Chennai. Customs authorities seized 200.04 kilograms of gold in the last fiscal year. As of 31 August this year, more than 200 kilograms of gold had been seized at the airport. In addition to the seizures made outside the airport, especially by the state police in Malapuram district.
From January 1, 2023
The UAE’s new policy stipulates that controlled companies and institutions must comply with the requirements of the regulations during the audit period beginning January 1, 2023. Additionally, they must conduct a third-party review after one year. These reports must be submitted to the Ministry of Economy within 90 days of the completion of the review cycle.
[ad_2]
Source link