Declaration of Ultimate Beneficial Ownership in UAE
The United Arab Emirates (UAE) has recently implemented a law requiring all companies and other legal entities to declare their ultimate beneficial ownership in UAE (UBOs). This is part of a global effort to combat money laundering and terrorism financing. The UBO is the natural person who ultimately owns or controls a company or other legal entity, and who ultimately benefits from its activities.
The declaration of UBO must be submitted to the relevant authorities in the UAE. The UBO penalties in UAE for failing to comply with the UBO requirements in UAE are severe, and can include fines, imprisonment, or both.
If you are a company or other legal entity in the UAE, it is important to understand the UBO requirements and to comply with them. You can find more information about the UBO requirements on the website of the relevant authorities.
Things to know about the UAE’s new law on UBO:
The UAE’s new law on ultimate beneficial ownership in UAE is a significant step forward in the fight against money laundering and terrorism financing. By requiring companies and other legal entities to declare their UBOs, the UAE is making it more difficult for criminals to hide their assets and activities.
The law also helps to protect the UAE’s financial system from being used to launder money or finance terrorism. By knowing who the ultimate owners of companies and other legal entities are, the authorities can better track and monitor financial transactions.
The UAE’s new law on UBO is a positive development that will help to make the country a more transparent and secure place to do business.
Benefits of the UAE’s new law on ultimate beneficial ownership in UAE:
- It helps to fight money laundering and terrorism financing.
- It protects the UAE’s financial system.
- It makes the UAE a more transparent and secure place to do business.
If you are a company or other legal entity in the UAE, you should take steps to comply with the UBO requirements.
How to complete a declaration of UBO in UAE
The declaration must include:
- The name of the company.
- The date of incorporation or establishment of the company or other legal entity.
- The registered address of the company or other legal entity.
- The identity of the UBOs, including their name, nationality, date of birth, and residential address.
- The declaration of UBO must be submitted within 60 days of the establishment of the company or other legal entity. The declaration must be updated within 30 days of any changes to the information provided.
Things to keep in mind about UBO requirements in UAE
- The ultimate beneficial ownership in UAE requirements apply to all companies and other legal entities, regardless of their size or activity.
- The UBO requirements in UAE are not limited to companies that are incorporated in the UAE. They also apply to companies that are incorporated in other countries but have a presence in the UAE.
- The UBO requirements are enforced by the Financial Intelligence Unit (FIU) of the UAE.
Challenges that companies face in complying with the UAE’s new law on UBO:
- Identifying the ultimate beneficial ownership in UAE: This can be challenging, especially for complex structures with multiple layers of ownership.
- Gathering the required information: The required information may not be readily available, and it may be necessary to conduct extensive due diligence.
- Submitting the declaration: The declaration must be submitted to the relevant authorities in the UAE, and the process can be time-consuming and complex.
- Updating the declaration: The declaration must be updated within 30 days of any changes to the information provided, which can be a burden for companies with a high turnover of UBOs.
Despite these challenges, it is important for companies and other legal entities to comply with the UAE’s new law on UBO. The UBO penalties in UAE for non-compliance are severe, and the benefits of compliance outweigh the challenges.
Tips for complying with new law on ultimate beneficial ownership in UAE:
- Get professional help: If you are unsure about how to comply with the UBO requirements, it is advisable to get professional help from a lawyer or accountant who is familiar with the law.
- Use a UBO registry: There are a number of UBO registries that can help you to identify and manage your UBOs. These registries can make the process of complying with the UBO requirements more efficient and cost-effective.
- Stay up-to-date: The UBO requirements are constantly evolving, so it is important to stay up-to-date on the latest changes. You can find more information about the UBO requirements on the website of the FIU.
By following these tips, you can help to ensure that your company or other legal entity complies with the UAE’s new law on UBO.
Q: “Demystifying the Declaration of Ultimate Beneficial Ownership in the UAE: What Does it Entail?”
A: The Declaration of (UBO) is a regulatory requirement in the UAE aimed at enhancing transparency and combating money laundering and illicit financial activities. It involves identifying and disclosing the individuals who ultimately own or control a company. The UBO declaration provides crucial information about the true beneficiaries behind corporate structures, ensuring accountability and integrity in the business environment.
Q: “Navigating the Declaration of Ultimate Beneficial Ownership in the UAE: How Can Companies Comply?”
A: To comply with the Declaration in the UAE, it’s essential to identify and document the individuals who hold significant control or ownership over your organization. Start by conducting an internal review to determine the ultimate beneficial owners. Collect relevant information such as personal details, ownership percentages, and voting rights. Once identified, submit the UBO declaration to the designated authority within the specified timeframe. Remember, compliance with UBO regulations not only fulfills your legal obligations but also promotes transparency and trust in the business landscape. So, set sail, uncover your ultimate beneficial owners, and navigate the seas of compliance in the UAE!
Ahmed Mahfoudh Chartered Accountants & Auditors can help you with your ultimate beneficial ownership in UAE. Contact us today to discuss your case and learn more about our services.
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