UBO Compliance Services

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Identifying the ultimate beneficial owner is a primary requirement as per Anti-Money Laundering laws (AML).  As a result of its strong commitment to fighting money laundering and financing of terrorism, the UAE government has issued Cabinet Decision No 58 of 2020 on Ultimate Beneficial Ownership (UBO). In line with the Resolution, companies registered with offshore, free zone and mainland authorities are required to disclose the details of their real beneficiary owner to the regulatory authorities. The requirement may seem complex, but the entities can hire providers of UBO compliance services in Dubai to navigate the requirements.

The resolution has imposed new procedural requirements for the companies operating in the UAE. Mainly, the companies under obligation must prepare, submit and maintain three registers: Real Beneficiary Register (RBR), Partners or Shareholders Register (PSR) and Nominee Directors Registry. Failing to comply with these regulations may attract hefty penalties along with reputation damage. Entities struggling to ensure compliance can consult with the best UBO advisors in Dubai.

Definition of Ultimate Beneficial Owner

The Cabinet Decision No. 58 of 2020 defines an ultimate beneficiary owner as any one of the following:

  • Any natural person who owns or controls directly or indirectly at least 25% of the share capital
  • Any natural person with voting rights for at least 25% of the shares
  • Any natural person with ultimate control over the legal person

Key Requirements of UBO

Companies under the UBO obligations must meet the following requirements:

Preparing & Filing Real Beneficiary Register 

The RBR should include details of the beneficial owner, such as full name, nationality, date & place of birth, place of residence, address for sending notifications, passport or ID number, country and date of issue and expiry, basis and date on which the person became a real beneficiary; and the date on which the person ceases to be a real beneficiary. After preparing the register, it should be submitted to the relevant regulatory authority. Availing of UBO compliance services in Dubai can help the companies prepare and file the RBR register.

Preparing & Filing Partners or Shareholders Register

For the PSR, companies must maintain details of partners or shareholders as set out in the Cabinet Decision. The firms must also update the PSR with any change occurring within 15 days from the date of the change. The PSR must include details such as the number and class of shares each partner or shareholder owns in the company and the date on which they became a partner or shareholder.

Preparing & Filing Nominee Director / Manager Register

If applicable, the companies should prepare, submit and maintain a register for Nominee Director / Manager. The register should include details of Directors / Managers acting by the instructions of another person. UBO advisors in Dubai can help the companies prepare and submit the Nominee Director / Manager Register.

Requirements for Companies under Liquidation

Apart from the operating entities, companies undergoing liquidation in the UAE also need to meet UBO requirements. Companies under liquidation should submit the RBR & PSR or its true copy to the Registrar within 30 days from the date of the liquidator’s appointment. Apart from that the liquidators or administrators must maintain the Registers for at least five years from the date of liquidation.

Companies Exempted from Ultimate UBO

The requirement to disclose the details of the Real Beneficiary applies to all the companies incorporated on the mainland as well as the companies licensed by the free zones. However, the following entities are exempted from the purview of Cabinet Decision No. 58 of 2020:

The Best UBO Compliance Services in UAE

As the UAE is stringently enforcing AML-related compliance requirements such as the UBO, companies should tread the waters carefully. Non-compliance may lead to hefty penalties, suspension of trade license and reputation damage. An efficient way to navigate the complex system of UBO compliance is to seek the advice of the best UBO consultants in Dubai such as Accobis Corporate Services Provider. We are one of the leading providers of UBO services in Dubai with a reputation for saving our clients from hefty penalties.

Accobis has a team of UBO advisers in Dubai who have in-depth knowledge about the UBO compliance landscape. Our consultants can advise the companies on the creation of UBO registers, record-keeping, and maintenance of UBO registers. If any penalty is incurred, Accobis can appeal on behalf of the clients. Business owners who are confused about UBO compliance requirements can consult with our UBO advisors in UAE.

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