Ultimate Beneficial Owner Regulations

Cabinet Resolution No. (58) of 2020 regulating Beneficial Owner Procedures (the “Resolution”) came into effect on 28 August 2020 and replaced Cabinet Resolution No. 34 of 2020 issued earlier that year. The Resolution introduced new requirements for entities to disclose their beneficial owners. The purpose of the regulations is to enhance the transparency of entities registered in the UAE, as well as to combat terrorism financing and targeting the real persons behind money laundering.

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    What are Beneficial Owner Regulations ?

    International organizations and like the Financial Action Task Force (‘FATF’), which promotes measures related to fighting anti-money laundering and to combat the financing of terrorism (‘AML/CFT’), and the OECD both support ‘beneficial ownership’ regimes.

    A ‘beneficial ownership’ regime regarding the ownership of legal entities is a critical tool in combatting tax evasion, corruption, money laundering, and the financing of terrorism. It also allows agencies to determine the ownership and control of legal entities such as corporations, and to “look through” the different corporate layers to conclude who are the true (or ultimate) beneficiaries.

    As part of the UAE’s shift towards greater transparency, and to be in line with global standards, the UAE Ministry of Cabinet Affairs (‘Cabinet’) issued Cabinet Resolution No. 58 of 2020 on the regulation of the Procedures of the Real Beneficiary’ (‘Resolution 58’).

    Resolution 58 introduced a requirement for entities in the UAE (with certain exceptions) to secure and maintain proper, reliable and current information of their real beneficiaries (‘Real Beneficiaries’) as well as update the authorities in this regard. This legislation introduces the beneficial ownership regime to the UAE “mainland” and free zone entities and mandates the maintenance of the relevant registers.

    How to know more about UBO regulations ?

    We at Protax keep issuing insights on latest development in fields of law, regulations which concerns businesses in the UAE. Here’s an article that will help you understand more about Beneficial Owner Regulations and their compliance.

    • Ultimate Beneficial Owner Regulations Explained

      Cabinet Resolution No. (58) of 2020 regulating Beneficial Owner Procedures (the “Resolution”) came into effect on 28 August 2020 and replaced Cabinet Resolution No. 34 of 2020 issued earlier this year. The Resolution introduced new requirements for entities to disclose their beneficial owners. The purpose of the regulations is to enhance the transparency of entities registered in the UAE, as well as to combat terrorism financing and targeting the real persons behind money laundering.

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    How Protax can Help ?

    • Prepare registers of the UBOs, Partners / Shareholders and Nominee Directors / Managers (if applicable), in accordance with the Resolution.
    • Arrange to file with the authorities.
    • Maintain the relevant registers on a dedicated company secretarial database on an ongoing basis. 
    • Inform the relevant authority of any changes or amendments to the information provided.