Dubai Officials Warns Against Investing in Bogus Company Emgoldex

 

Government authorities in the UAE have cautioned Filipino residents here from investing in gold in an online store that claims to have a base here in Dubai.

 

Hundreds of residents have been inviting other residents to invest in Emgoldex, or ‘Emirates Gold Exchange’, allegedly an online store for gold, for months now. Here, clients can allegedly buy and sell gold bars weighing one to 100 grams.

 

Through its Goldex programme, clients pay Dh3,000 to reportedly get 15 grams of 24k gold bullion that can be “delivered” in the UAE or stored in Germany.

 

To receive a “credit bonus” of Dh15,000, a client needs to refer two more clients and fill a table with 14 clients under him.

 

No License in Dubai

 

When contacted by Gulf News, a DMCC (Dubai Multi Commodities Centre) spokesperson denied that the companies [Emgoldex and Gold and Silver Physical Metals KG] are registered with the government regulator of commodities trading.  

“Emgoldex is not a DMCC-licensed company. DMCC has taken steps to prevent further misuse of our name.”

 

The video also claimed it is the online portal of a big Dubai-based gold manufacturing company duly licensed by the DMCC. Gulf News called the company and an official requested that its name not be mentioned in this article as “we are not having any ties with Emgoldex. It’s all a lie”.

 

Gulf News also contacted the Dubai Gold and Commodities Exchange (DGCX). Gaurang Desai, Interim CEO of DGCX, said: “Emgoldex or its German parent company. Gold & Silver Physical Metals KG, are not registered broker members or partners of the Dubai Gold and Commodities Exchange (DGCX).”

 

“DGCX is regulated by the Securities and Commodities Authority (SCA) in the UAE. All the broker members of DGCX are licensed by SCA and are required to maintain strict compliance with SCA-approved DGCX by-laws.”

 

SCA’s list of registered gold traders or brokers does not include either of the companies as well.

 

Mohammad Rashid Ali Lootah, Executive Director of Commercial Compliance and Consumer Protection (CCCP) sector in the Department of Economic Development (DED), Dubai, said neither of the companies is registered with DED.

 

He said no online store, especially those that sell or trade gold, can operate in Dubai without a licence. The penalty for doing so varies but starts from Dh5,000.

 

Gulf News found that the purported office of Emgoldex in Jumeirah Lakes Towers belongs to a consulting company. The receptionist of the company said Emgoldex used to rent that space but they “left for Russia some time ago”.

 

As the time of this writing, more and more Filipinos here in Dubai, Taiwan, Malaysia, and Philippines are falling victims of this online scam. The Philippine Securities and Exchange Commission (SEC) earlier this year has already issued warning against the bogus company but people who are aiming for overnight richness are still enticed to join, ABS-CBN news said.

 

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