Ultimate Beneficiary Owner (UBO) filing in the United Arab Emirates (UAE) is a mandatory requirement for companies operating in the country. The UAE government introduced regulations on UBO filing as part of its efforts to fight financial crime such as money laundering, terrorist financing, and tax evasion.
If you are a business owner in the UAE, it is important to understand what UBO filing entails and how you can meet the requirements to ensure compliance with UAE laws and regulations.
UBO filing refers to the process of identifying and registering the ultimate beneficiary owners of a company with the relevant authorities in the UAE. The ultimate beneficiary owner is the person or entity that ultimately owns or controls the company. UBO filing is a way to promote transparency and accountability in a company’s ownership structure.
In the UAE, UBO filing is governed by laws and regulations such as Cabinet Decision No. (58) of 2020 on the Regulation of the Procedures of the Real Beneficiary and Federal Law No. (20) of 2018 on Anti-Money Laundering and Countering the Financing of Terrorism and Illegal Organizations (AML/CFT Law).
In the United Arab Emirates (UAE), companies are required to comply with regulations regarding Ultimate Beneficial Ownership (UBO). The purpose of UBO compliance is to ensure transparency and prevent financial crime such as money laundering and terrorist financing.
If you own or operate a business in the UAE, it is important to understand what UBO compliance entails and to ensure that your company is in compliance. Failure to comply with UBO regulations can result in significant financial and reputational damage.
Meaning Of UBO
The ultimate beneficiary owner is the person or entity that ultimately owns or controls a company. This can include individuals or legal entities that own or control a company directly or indirectly through other means. In the UAE, a person or entity is considered a beneficial owner if they own or control 25% or more of a company’s shares or voting rights, or if they can control the company’s decision-making process in other ways.
In some cases, a company may have more than one ultimate beneficial owner. It is important for companies to identify and register all ultimate beneficial owners in order to be in compliance with UBO regulations.
How to File UBO in the UAE?
To file UBO in the UAE, companies must take certain steps to ensure compliance with the relevant laws and regulations. These steps include:
1. Identifying and verifying ultimate beneficiary owners in the company.
2. Maintaining accurate and up-to-date records of the ultimate beneficiary owners.
3. Filing UBO information with the relevant authorities within the specified time frames, usually within 60 days of changes to ownership or control.
4. Co-operating with authorities and providing any additional information required for due diligence or compliance purposes.
5. Regularly reviewing and updating UBO information to ensure compliance with any changes in laws or regulations.
Failure to comply with UBO filing requirements can result in significant fines and legal penalties for a company. It is important to work with experienced professionals who can help you understand and comply with all UBO filing requirements in the UAE.
What is UBO Compliance?
UBO compliance requires companies to identify and register their ultimate beneficial owners – the individuals who own or control a company – with the relevant authorities. This information is then used to combat money laundering, terrorist financing, tax evasion, and other types of financial crime.
In the UAE, UBO compliance is governed by several laws and regulations including:
– Cabinet Decision No. (58) of 2020 on the Regulation of the Procedures of the Real Beneficiary
– Federal Law No. (20) of 2018 on Anti-Money Laundering and Countering the Financing of Terrorism and Illegal Organizations (AML/CFT Law)
– Ministry of Economy Resolution No. (10) of 2019 on the Regulations Concerning Economic Substance Requirements (ESR)
How to Comply with UBO Regulations in the UAE?
Companies in the UAE must take certain steps to ensure compliance with UBO regulations. These steps include:
– Identifying and registering the ultimate beneficial owner(s) with the relevant authorities
– Maintaining accurate and up-to-date records of ultimate beneficial owners and changes to ownership structure
– Conducting ongoing due diligence to identify any potential changes in ownership or control
– Cooperating with authorities in any investigations related to financial crime
Companies must also be aware of the reporting requirements for UBO information. In the UAE, companies must report UBO information to the relevant authority within 60 days of any changes to ownership or control.
UBO compliance is an essential part of doing business in the UAE. Companies must take steps to identify and register ultimate beneficial owners and ensure ongoing compliance with UBO regulations. Failure to comply with UBO requirements can result in significant financial and reputational damage to a company. It is important to work with experienced professionals to ensure that your business is in compliance with all UBO regulations in the UAE.