Must dealers in precious metals and stones perform customer due diligence in the UAE?
Yes. A dealer in precious metals and stones that falls within the DNFBP definition must perform customer due diligence. Due diligence must be applied when starting a business relationship, when carrying out an occasional transaction at or above the AED 55,000 threshold, whenever there is suspicion of a crime, and whenever there is doubt about the accuracy of customer information already obtained.
Customer due diligence means identifying the customer using reliable, independent documents, verifying the identity of anyone acting on the customer’s behalf, identifying the beneficial owner, and understanding the purpose and nature of the dealing. For higher-risk customers, enhanced due diligence and senior management approval are required, and the dealer must monitor the relationship on an ongoing basis to ensure transactions remain consistent with what it knows about the customer.
Legal Reference (UAE):
· Cabinet Resolution No. 134 of 2025 (Executive Regulations), Article 7 sets out when customer due diligence must be applied.
· Cabinet Resolution No. 134 of 2025, Article 9 sets out the customer identification requirements.
For more details, consult the full text of Cabinet Resolution 134 of 2025 or seek guidance from your AML compliance officer.