630 million dirhams, penalties imposed on 42011 violating establishments

The Ministry of Economy: 93% of companies' compliance with the disclosure of "real beneficiary" data

Ministry officials during a briefing on countering money laundering and beneficial ownership procedures.

From the source

The Ministry of Economy reported that the percentage of compliance with the disclosure of the real beneficiary reached 93% of the total number of companies operating in the country, which amounted to 565,000 companies and establishments, compared to 7% that did not comply if the data of the real beneficiary were not met.

The Ministry indicated, during the media briefing, yesterday, on confronting money laundering and the procedures of the beneficial owner, that the companies that have committed violations with regard to the real beneficiary have the right to file a grievance against these fines, according to the established procedures, accompanied by documents that prove the force majeure circumstances that prevented them from completing the disclosure. , pointing out that the total number of companies that did not disclose is estimated at 42,000 establishments, and administrative penalties have been imposed in the form of financial fines, with a total value of 630 million dirhams.

The real beneficiary

In detail, the Director of the Commercial Registration and Certificates of Origin Department at the Ministry of Economy, Ahmed Al Hosani, stressed the importance of the procedures followed for the real beneficiary in supporting the system to combat money laundering and combating the financing of terrorism in the UAE, as these disclosures contribute to developing governance systems and supporting the business environment in the country, which means protecting greater than financial crimes, money laundering and commercial fraud, thus enhancing confidence in the national economy in accordance with the principles of transparency and flexibility and in line with international standards.”

Al-Hosani explained that "the efforts of the (Ministry) and the companies' registrars so far have resulted in achieving a high compliance rate of 93% of the total establishments, pointing to the continuation of the Ministry's procedures in cooperation with partners until the data of the "real beneficiary" is met by 100% of the private sector establishments. Within the state and in non-financial free zones.

He explained that the ministry is continuing its procedures in cooperation and partnership with the 40 companies or licensing agencies, including the departments of economic development and the municipalities of Fujairah and Dibba, and the authorities of non-financial free zones, in order to ensure the full commitment of the private sector in the country to the procedures of the "real beneficiary", and the completion and registration of "beneficiary data" The real “for all private sector establishments within the state and in non-financial free zones, with a total number of 565,000 establishments.

He pointed out that the Ministry of Economy and company registrars applied administrative penalties to violating establishments as of July 1, 2021 in three phases, in accordance with Cabinet Resolution 53 of 2021 regarding violators of the procedures of the real beneficiary:

The first phase: 78,787 written warnings were issued in the first phase to non-compliant establishments, by examining the establishments’ records with the company’s registrars or by field inspection of the establishments’ headquarters.

The second stage: As of last July 8, administrative penalties of 15,000 dirhams per fine were imposed on the violating facilities, which numbered 42,011 establishments to date, with a total value of 630 million dirhams.

The third stage of administrative penalties, on establishments that continued their non-compliance, includes the imposition of a double fine of 30 thousand dirhams and suspension of the license, after 15 days from the date of signing the penalty for the second time, for the establishment that did not comply and comply with the mentioned legal requirements.

Al Hosani said, as is the case with violations of the regulatory requirements for combating money laundering, the right to complain about these administrative penalties is guaranteed to establishments that provide valid reasons for the penalty imposed on them, which are studied by grievance committees formed for this purpose by the registrars of the 40 companies. The concerned authorities in all the emirates of the country, in order to ensure greater flexibility and a greater understanding of the requirements of the business environment and the speed of deciding on grievance requests in accordance with best practices.

control and supervision

For her part, Director of the Anti-Money Laundering Department at the Ministry of Economy, Safia Al-Safi, said that “the efforts of the Ministry of Economy, within this system, are focused on two main axes: the first is the control and supervision of the business sector and the specific non-financial professions and ensuring its compliance, as the Ministry supervises the activities The four main areas within this sector are: real estate agents and brokers, traders of precious metals and gemstones, auditors, and corporate service providers.

She added: "As for the second axis, it is providing the data of the real beneficiary to all private sector establishments within the state and in the non-financial free zones, in cooperation with the concerned local licensing authorities, in a way that ensures the completion and registration of the data of the real beneficiary for more than 565,000 private establishments operating in various sectors in the country."

She indicated that the Ministry of Economy, since the beginning of this year, has focused on registering all businesses and non-financial professions identified in the goAML system, which is related to combating money laundering, and the automated reporting system for sanctions lists, which is related to combating the financing of terrorism and the financing of illegal organizations. Stressing that the ministry's goal is to ensure compliance and not to impose a fine, and that it counts on partnership and positive cooperation with the business sector and the designated non-financial professions to achieve the highest levels of oversight and compliance, in a manner that contributes to protecting the sector's investments from money laundering risks and avoiding violations.

3 steps to file a “real beneficiary” grievance

1- Sending the grievance request to the concerned registration authority, which is the licensed authority, within 30 days from the date of notification of the administrative penalty.

2- The application shall include an explanation of the reasons and justifications supporting its grievance, along with the supporting papers and documents.

3- The Grievance Committee considers the request and issues its decision of acceptance or rejection within (30) days from the date of submitting the appeal.

95% commitment of establishments in Dubai

Dubai Economy reviewed its efforts to combat money laundering and register the data of the “real beneficiary”, as its awareness campaigns resulted in the registration of more than 95% of the establishments within the commercial registry of the Dubai Economy, as the department began to follow up and verify the non-compliant establishments through the electronic programs that have been configured. Finally, to follow up on the commitment of establishments and license holders, represented by the organizational units concerned with auditing, monitoring and inspection of violating licenses, regarding anti-money laundering legislation and recording the data of the real beneficiary, where the imposition of penal measures on violators of a value of 15,000 dirhams and escalating to 30,000 dirhams and may reach closing Enterprise.

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