Ministry of Economy to impose penalties for non-compliance with ultimate beneficial owner procedures

Ministry of Economy to impose penalties for non-compliance with ultimate beneficial owner procedures

The Ministry of Economy has adopted additional steps to ensure the compliance of establishments registered in the UAE with the submission and the availability of ultimate beneficial owner information, to strengthen the UAE's regime in anti-money laundering and combating terrorism financing. As part of these measures, the licensing authorities in all emirates and in the commercial free zones have been given the authority to impose administrative penalties and fines on non-complying establishments that fail to adhere to the ultimate beneficial owner requirements under the Cabinet Resolution (58) of 2020, regulating the Ultimate Beneficial Owner Procedure on or before June 30, 2021.

The implementation of penalties for non-compliance will start on July 1, 2021 with a written warning, followed by a fine of AED 100,000 in the event of repetition and non-compliance. Additional administrative penalties, including the suspension of the license for a period of one year or restrictions on the powers of the board of directors, services provided to establishments, might also be imposed.