Fines on UBO Violators Imposed for UAE Businesses

The Ministry of Economy, in collaboration with the relevant licensing bodies in the country, announced that the first phase of administrative penalties, including written warnings to non-compliant facilities, will be implemented on July 1, 2021.

The implementation of the second phase of administrative fines on establishments that fail to take the necessary steps to correct their status during this period will begin on Thursday, according to the ministry. Non-compliant establishments will face fines in accordance with Cabinet Resolution No.53 of 2021 during this period.

The MoE confirmed in a statement that the submission of ultimate beneficial owner data to licensing authorities by licensed and registered establishments in the country is an obligatory legal requirement, and that non-compliance will result in the imposition of administrative penalties stipulated in Cabinet Resolution No. (53) of 2021.

“The penalties begin with the issuance of a written warning, and if the noncompliance by an establishment continues, including but not limited to a Dh100,000 fine, as well as additional administrative penalties such as the suspension of the license for a year or restrictions on the board of directors’ powers. According to the ruling, establishments can file an appeal against the punitive measures within the specified legal term of 30 days from the date of notification of the violation.” 

The ultimate beneficial owner procedures include creating and maintaining a record of the ultimate beneficial owner data within the establishment; verifying the accuracy and validity of the data and updating it on an ongoing basis; and submitting the real beneficiary owner data to the licensing authorities via the designated channels.

Source: Khaleej Times

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