Beneficial Owners Procedures
The necessity of identification of Ultimate Beneficial Owner has gained momentum across the globe with increased International focus on tax transparency and the fight against tax evasion and other financial crimes.
Further, the recommendation of 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.
As per the Regulation the details of Ultimate Beneficial Owner (UBO) are supposed to be filed by the existing Legal Person within 60 days of promulgation of the decision i.e. by October 27, 2020.
However, each Licensing Authority has issued its own deadline to comply with Beneficial Owner Procedure Regulations. Therefore, to ensure compliance, one needs to consider the deadline issued by the licensing Authority with whom it is registered.
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.
What are the details required to maintain Register of Beneficial Owners? Though each licensing Authority has their own list of details, broadly, the Register of Beneficial Owner shall include the following data in respect of each Beneficial Owner:
- Full name
- Nationality
- Date & Place of Birth
- Passport / Identity card No., place of issuance, its issue date and expiry date
- Residential Address or address where notice can be sent
- Email address and Phone number
- Number of shares held and its nominal value
- Date when person became Beneficial Owner
- Date on which person ceased to become Beneficial Owner, if any
What are the details required to maintain Register of Shareholders or Partners? The Regulation lists the details required to be maintained in respect of Shareholders of the reporting entity which are as under. However, each licensing has issued its own list of details and format to submit shareholders’ details.
In respect of Individual Shareholders:
- Full name (as passport or identity card)
- Nationality
- Address
- Place of Birth
- Name & Address of employer
- True copy of Valid Passport or ID
- Number of shares held by each holder with categories & associated voting rights
- Date when acquired capacity in Legal Person
- Details of any Shareholders or Partners acting as Trustee or Board Nominee Member, if any
In respect of Corporate Shareholders:
- Name, legal form & MOA
- Head Office/ Principal Address (For Foreign Legal Person- Name & Address of legal representative in the UAE)
- Articles of Association or other similar document
- Name of person holding higher management position (their details on Passport/ ID No., Date of Issuance, Expiry, Issuing entity)
- Number of shares held with categories & associated voting rights
- Date when acquired such capacity in Legal Person
- Details of any Shareholders acting as Trustee or Board Nominee Member
How can we help Our professional, dedicated, and competent team shall assist you in:-
- Analysing 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 the compliance with all the formalities of the Regulation
- Ensuring that all queries and concerns on the Regulation is duly addressed.
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