UAE anti-money laundering: Registration for non-financial entities, individuals extended until April 30

Ministry of Economy extends deadline for registration of designated non-financial businesses & professions in anti-money laundering regulations until 30 April

The Ministry of Economy (MoE) announced the extension of the deadline granted to Designated Non-Financial Businesses and Professions (DNFBPs) to register in the systems approved for countering money laundering and combating the financing of terrorism, until the end of April 2021. The extension has been granted due to a large number of companies in the sector coming forward to register in the last days of the previous deadline, which expired on March 31, 2021. Furthermore, the unusual circumstances faced by companies and the business sector in the wake of Covid-19 pandemic has also been taken into consideration.

The Ministry explained that it is mandatory for the targeted companies, which include brokers and real estate agents, auditors, dealers of precious metals and gemstones, and corporate service providers, to register in the goAML system and the Automatic Reporting System for Sanctions Lists before the end of the new deadline. The registration in these systems can be done free of cost. After the registration, they should also take the specified measures to ensure full compliance with the requirements of Federal Law No. 20 of 2018 on anti-money laundering, combating the financing of terrorism and illegal organizations, and their implementing regulations and relevant decisions.

The Ministry called on the concerned companies to take advantage of the new extended period for registration to avoid the penalties and fines stipulated in the law, which will be imposed starting from May 1, 2021. Fines start from AED 50,000 and go up to AED 5 million, while the penalties for companies that fail to register could even lead to the revocation of the license or closure of the facility itself.

Temporary Zero-rating of Certain Medical Equipment

On 1 September 2020, the Cabinet issued a Cabinet Decision No. 9/12 O of 2020 (“Cabinet Decision”). The Decision concerns the temporary application of VAT at the 0% rate on certain supplies and imports of medical equipment. Furthermore, the Ministerial Decision No. 380 of 2020 (“Ministerial Decision”) issued by the Minister of Health and Prevention on 6 December 2020 (with effect from 1 September 2020) specifies the medical equipment that are zero-rated in accordance with the Cabinet Decision. In accordance with Cabinet Decision No. 15/3 O of 2021, the above decisions shall be effective until 31 December 2021.

In accordance with the Cabinet Decision, a supply or import of certain medical equipment may be zero-rated. It should be noted that that the zero-rating of supplies and imports under the Cabinet Decision is separate, and in addition to, zero-rating of any other medical equipment in accordance with Cabinet Decision No. 56 of 2017 on Medications and Medical Equipment Subject to Tax at Zero Rate.

The “medical equipment” to which the temporary zero-rating rules apply are personal protective equipment used for the protection from Covid-19, and which contain the features and meet the specifications determined and specified by the Ministerial Decision. Such medical equipment are limited to:

  • Medical face masks that are not included in the Cabinet Decision No. 56 of 2017 on Medications and Medical Equipment Subject to Tax at Zero Rate (of approved standards 14683 and UAE.S ASTM F2100);
  • Half filtered face mask (UAE.S EN 149);
  • Non-Medical “community” face mask made from textile (UAE.S 1956);
  • Single-use gloves (UAE.S ISO 374-2); and
  • Chemical disinfectants and antiseptics intended for use on the human body, but excluding detergents, cosmetics and personal care products (UAE.S EN 1276, EN 1650, and EN 14476:2013+A2).

CONDITIONS TO ZERO-RATING

Date of supply/import of above mentioned medical equipment shall be within the period beginning from 1 September 2020 to 31 December 2021.

With The Jafza Offshore Company Formation Set-Up A Good And Robust Company In Dubai

Jafza Offshore Company Formation

Jafza Offshore Company Formation is a kind of an offshore company registered by a Jebel Ali Free Zone in Dubai.

Until lately it was the only offshore company which might grasp real estate property in Dubai. This attribute made JAFZA offshore company setup increasingly demanded by property owners.

The circumstances have changed now and the property can be registered under a cost-effective entity RAK offshore company.

JAFZA OFFSHORE COMPANY FORMATION

Jebel Ali offshore company formation can be set-up only by a registered representative. It means that you cannot carry out it directly with the government authority on your own.

The Offshore Agent In Jafza can be a business formation company in Dubai who will look after the official procedure and the registration procedure.

Jebel Ali offshore company is generally registered within 1-2 weeks depending on compliance sanction.

Your personal visit for signature confirmation is necessary. If a company director is a different person, his visit is also compulsory.

Note: offshore company registration in Dubai needs 2 directors only in case it’s a JAFZA offshore. Any other companies in diverse UAE authorities require only 1 director.

RESIDENT VISAS

JAFZA offshore company, as any other offshore company in UAE, is not entitled for UAE resident visas.

However, if you want a resident visa, you need to consider other options of business setup in Dubai in free zones or mainland. You can check business formation in UAE in any emirate as long as your company is registered in a free zone.

LICENSE RENEWAL

JAFZA offshore company renewal is completed by your registered Agent. Your own presence is not necessary.

You have to transfer the funds to the Agent, who will perform the formalities. Upon renewal, you will get a Certificate of good standing, which provides as an official proof that your company is on the go.

The price of the renewal is usually about 11,000 AED (3,015 USD) depending on your Agent.