UPDATE JUNE 2021: UBO Registry – A New Compliance Request For UAE Companies
Fines of up to AED 100,000.
A UBO (Ultimate Beneficiary Owner) is the natural person who ultimately possess or control 25% or more as a business partner, whether directly as a shareholder or indirectly via having control of the organizations, other structures, systems or entities that control the business partner.
A Cabinet Resolution No. 58 of 2020 (the ‘Decision’) was published by the UAE’s Ministry of Economy (MOE) On 28th of August 2020.
The UAE’s Ministry of Economy has set a deadline for the submission of UBO (Ultimate Beneficiary Owner) update as June 30th 2021. UAE aims to create a national economic database to elevate the UAE’s ranking in the global economic and financial indicators and enhance international cooperation in tackling money laundering & fighting terrorism financing. Establishments owned by government and the Financial Free Zone Establishments are free from this implementation. All the Main land and Commercial Free Zone must submit their UBO’s data before the deadline.
Deadline for the submission is June 30th 2021 & the law will come into effect from July 1st 2021. The Establishments that fail to comply with the new rules set by the MOE (Ministry of Economy) of UAE will receive a warning note at first and a fine of AED 100,000 will be imposed after the warning. Further the Establishments may face a license Suspension of up to 1 Year.
Below mentioned are the details to be disclosed with the authority:
– Ownership Details
– Ultimate Beneficial Owner’s details (of all the partners)
– Business model of the company
– Financial records of the company
General information including the details of the company from lawyers, banks, and auditors. For more information on UBO submission, feel free to contact us.
