Hand-carried gold challenges to be addressed with better regulations, surveillance

hand-carried gold challenges

The World Gold Council (WGC) is collaborating with Dubai to address challenges linked to hand-carried gold. Andrew Naylor, WGC's head of Middle East and Public Policy, discussed the risks and solutions associated with transporting gold in passengers' hand luggage.

Naylor highlighted the specific challenges posed by hand-carried gold, including concerns regarding its origin, potential for financial crimes, and compliance with international standards. To tackle these issues, the WGC, in partnership with the Dubai Multi Commodities Centre (DMCC), is implementing measures to enhance regulatory frameworks, surveillance, and enforcement mechanisms.

The absence of a globally accepted standard for passengers carrying gold in their luggage adds to the complexity. While some countries enforce limits on the amount of gold individuals can carry, others require travelers to declare such assets. In response, the WGC initiated a project in November 2023 to strengthen and standardize international regulations and procedures concerning hand-carried gold, aiming to promote responsible sourcing and trade practices.

This project aims to formulate policy recommendations addressing various aspects, including acceptable personal limits, standardized customs declaration processes, and digital tracking mechanisms. Ahmed bin Sulayem, executive chairman and CEO of DMCC, emphasized the urgency of implementing stricter measures on hand-carried gold.

Additionally, the WGC announced an agreement with DMCC to advance the gold industry in the UAE, focusing on implementing retail gold investment principles. These principles, already adopted in several global markets, aim to ensure that gold sellers adhere to universal best practices, enhancing customer confidence and trust in gold investments.

Naylor emphasized Dubai's cultural affinity for gold, highlighting its status as a safe-haven asset offering portfolio diversification and long-term returns. Despite economic uncertainties, gold investment prospects in Dubai remain promising due to robust market infrastructure and stable investment environment.

The recent surge in gold prices underscores its enduring value, with the 24K variant trading at record highs. Market research is another crucial area of focus for the WGC, aiming to analyze demand-supply dynamics, investment trends, and regulatory landscapes in Dubai and the broader UAE gold market.

By conducting comprehensive market research, the WGC aims to provide valuable insights to inform policymaking, enhance market efficiency, and foster sustainable development in the gold sector. The establishment of the WGC's new office in Dubai signifies a significant step towards strengthening the gold industry in the region, leading to increased market integrity, innovation, and investment opportunities.