“Economy”: The grace period ends on June 30th

Violation of not providing “real beneficiary” data up to one year suspension

The Economy has delegated the powers to apply administrative penalties and fines to local licensing authorities.

archival

The Ministry of Economy announced that it has taken additional steps to ensure the compliance of establishments registered in the UAE by providing “real beneficiary” data, and strengthening the system to combat money laundering in the country, pointing out that it has delegated the licensing authorities in the emirates of the state and in the non-financial free zones, to apply administrative penalties and fines to Non-compliance by creating a register of the “real beneficiary” and providing the required data correctly before June 30, 2021.

The ministry explained that the stipulated penalties and fines start with a written warning, and in the event of repetition and non-compliance, amount to 100,000 dirhams, in addition to additional administrative penalties such as suspending the license for a year, or restricting the powers of the board of directors.

Transparency level

The ministry stated, in a statement yesterday, that this step comes with the aim of concerted efforts and integrating roles between federal and local authorities, to ensure full compliance with establishments, in a way that contributes to raising the level of transparency in the business environment in the country, and enhancing the country's efforts in developing the system to confront money laundering and combating money laundering and combating money laundering. financing terrorism, supporting its file in this regard at the global level, and consolidating its position as a competitive economic center that applies the highest standards of integrity and transparency in the field of financial and commercial control, and confronts improper practices in business activities.

Facility Compliance

The Ministry of Economy revealed that the compliance rate of establishments by providing “real beneficiary” data amounted to 55.3% by the end of the second week of this June, at 284,129 establishments at the state level, confirming the continuation of coordination with the establishments licensing bodies, from the local economic departments and the authorities of non-financial free zones. To ensure the readiness of its registration systems to provide the real beneficiary data, and to ensure its quality and accuracy.She explained that she held more than 14 virtual workshops for the 38 licensing authorities, to discuss challenges, exchange experiences and enhance awareness, in addition to reviewing the distinguished results and experiences taken by some licensing authorities, in terms of awareness initiatives for companies, creating electronic systems, and educating employees who address The establishments, with the aim of achieving the highest levels of compliance for all establishments in the country, totaling 513,632 establishments, during the grace period that continues until the end of this June, when the implementation of violations will start as of July 1, 2021.

censorship campaign

The ministry also confirmed the continuation of its awareness and control campaign on the business community, calling upon the establishments to expedite the establishment of the real beneficiary register, and to provide the relevant data, during the grace period that ends on June 30, in order to avoid being subjected to administrative penalties and fines stipulated in the decision, which begins with a written warning, In the event of repetition and non-compliance, it amounts to 100,000 dirhams, in addition to additional administrative penalties such as suspending the license for a period of one year, or restricting the powers of the board of directors, and others.

necessary step

The ministry explained that providing the beneficial owner data is a necessary step to achieve effective disclosure and disclosure of the complex structures related to the chain of ownership and the beneficial owner of it in the licensed establishments in the state, which aims to raise the level of transparency in the economic environment, and meet the state's obligations towards relevant international organizations, such as the Group financial work.

She stressed that the commitment of enterprises to provide the data of the real beneficiary, in accordance with the relevant laws and decisions, will represent a qualitative leap in the development of governance and disclosure systems in the enterprises registered in the country, noting that this step will benefit the business and investment sector, as it will enhance security and economic stability, and will contribute to facilitating Attracting foreign direct investment and protecting businesses from financial crimes.

Required from establishments

The Ministry of Economy stated that the three main steps required of the establishments are:

1- Create a special record of the real beneficiary’s data, keep it in its documents, and present this record upon request from the relevant authorities and individuals.

2- Submitting an undertaking to establish the register and taking into account the accuracy of its data to the licensing authority to which each facility belongs.

3- Inclusion of the real beneficiary's data in the licensing authorities' systems through dedicated web pages on their official websites.

Counter money laundering

The efforts of the UAE in regulating the “real beneficiary” procedures are a main axis within the system of countering money laundering, combating the financing of terrorism and the financing of illegal organizations, and financing the proliferation of weapons of mass destruction. Achieving the objectives of Federal Decree-Law No. 20 of 2018 in the matter of countering money laundering crimes and combating the financing of terrorism and the financing of illegal organizations, and in implementation of Cabinet Resolution No. 58 of 2020 regarding the regulation of the procedures of the real beneficiary.

• The percentage of establishments' compliance with providing "real beneficiary" data amounted to 55.3%.

Follow our latest local and sports news and the latest political and economic developments via Google news