The UAE’s Ministry of Economy said on Tuesday it has taken more steps to ensure compliance with ultimate beneficiary ownership procedures – a crucial step to improve transparency within the economy and effectively prevent money laundering.

As part of the latest update, the ministry said it will allow licensing authorities in commercial free-zones and those across the country to penalize companies that do not comply with the ultimate beneficiary ownership procedures.

“The submission of ultimate beneficial owner data is a necessary step to effectively disclose and reveal the complex structures related to the chain of ownership and its beneficial owner in licensed establishments in the UAE,” the ministry said in a statement.

The UAE has strict laws to counter financial crimes. The country established the Executive Office of Anti-Money Laundering and Counter Terrorism Financing, an agency to tackle money launderers, entities and people suspected of financing terrorists and organized crime earlier this year.

Last year, the Ministry of Economy also set up an anti-money laundering