Ultimate Beneficial Ownership

UBO Update:
All UAE companies are required to submit UBO details before 30th of June 2021 whereas all the DED Companies are required to file before the due date 15th 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.

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    Beneficial Owners Procedures

    The necessity of identification of Ultimate Beneficial Owner has gained momentum across the globe with an increased International focus on tax transparency and the fight against tax evasion and other financial crimes.

    Further, the recommendation of the Financial Action Task Force (‘FATF’) to OECDs Global Forum on Transparency on measures geared to Anti-money laundering (AML) and Countering the Financing of Terrorism (CFT) has initiated new regulations in many countries.

    In this context, the United Arab Emirates (UAE) issued Cabinet Decision No. 58 of 2020 on Regulating the Beneficial Owner Procedures (the Regulations) on 24 August 2020.

    How can we help Our professional, dedicated, and competent team shall assist you in:-

    • Analyzing the corporate structure and Identification of UBO
    • Compiling the information required to be submitted to the licensing authority in connection with UBO
    • Undertaking the submissions with the licensing authority
    • Ensuring compliance with all the formalities of the Regulation
    • Ensuring that all queries and concerns on the Regulation is duly addressed.

    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.

    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
    • Information of customers and employees
    • 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.

    To help you navigate the UAE substance requirements, LMKG offers a comprehensive range of options – from a classification check to a full review, as well as advisory services on registering your status with the regulator.

    Dubai

    Office no 1202, Exchange Tower,
    Business Bay, Dubai, UAE

    +971 52 947 0997

    info@lmkgconsultants.com

    Saudia Arabia

    Al Olaya, Riyadh, Kingdom of Saudia Arabia
    Business Bay, Dubai, UAE

    +966 55 992 6518

    bilal@lmkgconsultants.com

    Pakistan

    Office #5, 2nd Floor, Block #20, PHA Apartments, G-7/1, Islamabad

    +92 330 532 7770

    mina@lmkgconsultants.com