UAE ramps up business ownership rules to combat money laundering, terrorism financing

Beneficiary data of 700,000 businesses operating in the UAE must be declared: MoE

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New business ownership rules aim to support the competitiveness of UAE’s business environment.
Bloomberg

HIGHLIGHTS

Key points:

The latest updates to the business ownership norms include:


  • New rules help identify companies’ real owners and prevent hiding ownership through complex structures.

  • Five steps are outlined to determine the actual beneficiary owner of a company.

  • Nominee board members must disclose their status and provide necessary information to companies.

  • A risk management approach is emphasized for enterprises to prevent money laundering and terrorism financing.

  • A dedicated AML/CFT unit will be established within the Registrar’s office to oversee compliance and report to the Ministry.

  • Administrative sanctions include warnings and financial penalties for violations, with a possible license suspension.

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