Every small or large enterprise has the desire to maximize revenue and prevent its earnings from being tainted by fraud. There are many instances when multi-structured firms in the UAE fail to detect unauthorized accounts, which results in financial crimes.
To counter fraud, each business should acclaim Anti-money laundering and anti-terrorist financing laws. That is why the United Arab Emirates regulatory authorities require UBO compliance for all registered businesses. Unfortunately, it is often difficult to identify the ultimate beneficial owner in UAE, due to the entire ownership structure of the company. Here we will guide you in the identification of UBO under relevant authorities.
What is the Ultimate Beneficial Owner?
The ultimate beneficial owner meaning is a legal or a natural individual who ultimately owns and controls the transactions being conducted in a company. The UBO indirect ownership has effective control over the legal person. Get to know more about Registration of Ultimate Beneficiary Ownership.
Main Objective of UBO
Entities must register for the role of Ultimate Beneficial Owner with their respective licensing authorities under the applicable legislation. The primary objective of ultimate beneficial owner UAE regulation is to increase accountability and transparency of business accounts. It also facilitates to:
- Expose the origin of the criminal proceedings.
- Fight against financial terrorism.
- Stopping the access of unauthorized accounts.
- Enhances financial transparency.
- Ensure partners about UBO compliance.
- Prevent institutions from money laundering.
To combat the risk associated with terrorist funding, each business entity must consider AML Laws and Penalties in the UAE. This is will save your financial records from unauthorized access and stop money corruption.
Essential Requirements for UBO Compliance
The ultimate beneficial owner UAE registration requires a piece of accurate information and documents. The real beneficiary details should include:
- Full Name, nationality, and place & date of birth.
- Residential Address
- Passport & ID number, date of issue, and date of expiration.
- Cessation of beneficiary status, at which point he became a UBO
Along with UBO registration, a company should also maintain a register of its shareholders or partners. It includes the following details of shareholders/partners.
- The number or class of shares that each shareholder or partnership owns.
- The date of the acquisition of the shareholder’s capacity.
- Basic information like ID, Passport, Nationality, Address, Place of birth, and other information should also be included along with a true copy.
- Detail about the members of the board who are nominated by their shareholders or partners.
UBO Declaration in Dubai, UAE
In order to operate a business in the United Arab Emirates, all entities are obliged to the declaration of the ultimate beneficial owner. It is compulsory before the identification of the real beneficiary of the company. According to the new resolution, all licensed businesses must acknowledge their ultimate beneficial owner declaration. The institute responsible or exempted from UBO compliance:
- Legal Entities are responsible if located on the mainland and non-financial free zones.
- Legal entities exempt from UBO that are directly or indirectly owned or may
