The UAE’s Ministry of Economy (MoE) said that 15 percent of establishments have not complied with procedures to file the ultimate beneficial owners (UBOs) information.

According to the ministry, 85 percent had complied, and it had started writing letters to establishments that had not and would issue fines to those that do not do so by 8th July.

Fines of AED 100,000 can be issued, and licenses suspended for up to one year, plus restrictions of powers of boards of directors can also take place for non-compliance.

In a press statement, the ministry said the procedures were part of efforts to strengthen measures against money laundering and financing of terror and illegal organisations.

An ultimate beneficial owner (UBO) is the individual who benefits when an institution initiates any transaction. UBO data must be submitted by establishments in the UAE under cabinet resolution 53 of 2021. Any changes to the UBO must also be submitted within 15 days.

(Writing by Imogen Lillywhite; editing by Seban Scaria)

 imogen.lillywhite@refinitiv.com

Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here. 

© ZAWYA 2021