All UAE companies required to submit UBO details before 30th of June 2021
An initiative of the UAE government to combat against activities related to terrorist financing and money laundering, Cabinet Decision (No 58) of 2020 on Regulation of Procedures for Real Beneficiary requires all companies to maintain a register and submit relevant details of their Ultimate Beneficial Owners (UBO).
Ministry of Economy has set its deadline for submission of UBO details of all companies under its jurisdiction for the 30th of June 2021.
Fine & Penalties up to AED 100,000
All companies in UAE failing to submit UBO details on or before the deadline will be imposed with administrative sanctions face penalties of up to Dh100,000 from July 2021.
Importantly, the company’s licence can also be suspended for a year for not conforming to the instructions of the ministry.
Details to disclose with the authority are as follows:
- Details of ownership
- Details of all Ultimate Beneficial Owners
- Company business model
- Company financial records
- General information including the details of the company from lawyers, banks, and auditors
A real beneficiary or UBO is the natural person controlling or owning at least twenty five (25) percent of the company’s issued share capital, either through direct or indirect control or chain of ownership. A UBO is also any natural person that has control on the dismissal and appointment of majority of company directors.