“Economy”: As the deadline for submitting data ends today

Suspending the license and restricting the board of directors are the most prominent penalties for violators of the “real beneficiary” procedures

The ministry affirmed that the state is fully committed to confronting money laundering and combating the financing of terrorism.

Photography: Ahmed Ardeti

Today, Wednesday, the deadline set by the Ministry of Economy for the compliance of establishments registered in the country to submit “real beneficiary” data to licensing authorities, and to strengthen the anti-money laundering system, in order to avoid administrative penalties and fines stipulated for violators, which begins with a written warning to the violating facility, and arrives in the event of Repeated violation or non-compliance with a fine of 100,000 dirhams, suspension of the license for a period of no less than one year, or restriction of the powers of the Board of Directors and others.

full commitment

In a recent report, the Ministry of Economy confirmed that the UAE is fully committed to confronting money laundering and combating the financing of terrorism, detecting and deterring it in accordance with legislation, noting that the relevant authorities in the country have established an institutional system for supervision, control and collection of information on all practices that may lead to financial crimes. and countering them, including money laundering and terrorist financing.

The ministry pointed out the need to consider the UAE as a country in which criminals cannot carry out money laundering and terrorist financing operations, or even use it as a transit route for the transfer of proceeds resulting from any criminal activity.

She stated that the authorities are aware that the national framework and coordination to counter money laundering and combat the financing of terrorism must continue to be strengthened and developed to improve its effectiveness.

risk

The ministry warned of the many risks arising from money laundering, most notably the economic stagnation, the increase in crime and corruption, the threat to economic stability and the weakening of various financial institutions.

She stated that the State's Financial Information Unit analyzes suspicious transactions and activities that may involve money laundering, terrorist financing and related criminal activities, based on data and reports received from financial institutions and designated non-financial businesses and professions, so that they cooperate and share knowledge to detect those activities. and take the necessary measures to combat it.

Facilities

The Ministry of Economy had previously announced that 530,000 establishments are required to comply with anti-money laundering procedures, explaining that the "real beneficiary" decision targets all licensed and registered establishments in the UAE with the authorities of the Departments of Economic Development and local licensing authorities or in non-financial free zones, with the exception of them. Companies owned by or affiliated with the federal or local government and companies listed in the financial free zones, namely the Abu Dhabi Global Market and the Dubai International Financial Centre.

And she indicated that the money laundering process is defined as every financial or banking transaction that aims to conceal or change the identity of illegally obtained funds, by passing them through the financial and banking system, in order to appear as stemming from legitimate sources, and then reinject them and invest them in a legal way different from their reality. .

Confrontation

The government’s procedures for organizing the data of the “real beneficiary” come in implementation of the provisions of Federal Decree Law No. (20) of 2018, in the matter of facing money laundering crimes and combating the financing of terrorism and the financing of illegal organizations and its executive regulations, and they aim to strengthen the system and mechanisms for facing money laundering and combating the financing of terrorism. It contributes to enhancing confidence in the national economy and enhancing the business and investment environment in the country, in accordance with the principles of transparency and flexibility, and in line with international standards. It also contributes to raising the UAE’s classification in relevant global reports and indicators.

"The real beneficiary"

In accordance with the controls set by Article (5) of Cabinet Resolution No. (58) of 2020, regarding the regulation of the “real beneficiary” procedures, the “real beneficiary” is the natural person who owns the facility, or controls it permanently, through shares or Direct or indirect ownership shares of 25% or more of the enterprise’s capital, or has the right to vote by 25% or more, or the right to appoint and dismiss the majority of the enterprise’s managers, or any other means by which he exercises final control over the enterprise, or the natural person who occupies Senior management position.

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