The United Arab Emirates (UAE) recently issued Cabinet Decision No. 58/2020 on the Regulation of Procedures Related to Real Beneficiaries (“the Regulation”), which came into effect on 28 August 2020. The UBO Regulations establish a framework for reporting and registering beneficial interests, ultimate beneficial owners (“UBO”) and professional directors.
The objective of the Regulation is intended at identifying the real beneficiaries or owners of entities, combating anti-money laundering crimes, the financing of terrorism and financing of unlawful organisation, and likelihood of battling tax avoidance and providing greater transparency to the UAE’s business environment in line with the international guidelines and requirements.
Existing companies operating in the UAE and covered under the scope of the Regulation will be required to create and maintain:
1.) Register of Real Beneficial Owners; and
2.) Register of Partners or Shareholders (including details of nominal management member) and professional directors. Entities which are directly or indirectly wholly owned by Federal or Emirate government and companies registered under Dubai International Financial Centre(DIFC) and Abu Dhabi Global Market(ADGM) do not fall under the purview of the Regulation.
To abide by the regulations as prescribed by the licensing authorities, corporate entities should take steps to compile the necessary information to be compliant with this Regulation. Failing to abide by the Regulations and not preparing and updating of the registers will attract administrative fines.
Should you have any questions or need assistance with navigating through the requirements introduced by this Regulation, PKF can assist you with the following:
- PKF can review the existing structure of the organization.
- PKF can assist identifying the Real Beneficiaries.
- PKF can assist you in submitting the information to the relevant licensing authorities in the prescribed format