Abu Dhabi's ADGM issues fines for contravening rules on foreign account holders

Dubai: As many as 23 firms have been fined by Abu Dhabi's ADGM regulator for contravening the 'Common Reporting Standard Regulations 2017' and/or the Foreign Account Tax Compliance Regulations 2022.

The fines total Dh610,000.

Together, the regulations are international frameworks that require reporting entities to collect and report information on foreign account holders. This is to help combat international tax evasion.

"The underpinning inter-governmental arrangements entered into by the UAE enhance global tax transparency by facilitating the automatic exchange of financial account data between jurisdictions," said a statement from ADGM.

The actions taken against the 23 entities 'address a range of CRS and FATCA compliance breaches', including failures on the part of in-scope entities to:

* Submit risk assessment;

* Submit the required annual information returns;

* Follow due diligence procedures;

* Report information in a complete and accurate manner; and

* Collect valid self-certification forms.

According to Emmanuel Givanakis, CEO of the Financial Services Regulatory Authority at ADGM, “ADGM is committed to upholding international tax reporting standards. These enforcement outcomes reflect the FSRA’s firm support for the UAE’s commitment to financial transparency and alignment with global commitments to information exchange.

"We are committed to identifying and addressing practices that do not meet our commitment to combat tax evasion through implementing robust and effective regulations in line with leading global standards of compliance and reporting responsibility".