The UAE, as an economic hub for investment and growth, has implemented numerous compliances measures to combat money laundering and terrorism financing.
One such measure, in line with the UAE government’s objectives, is beneficial ownership. It is paramount to establish a concise ownership structure of companies incorporated within the UAE.
The directive requires companies to maintain information with regard to beneficial ownership, shareholders and other relevant members.
As prescribed under Cabinet Resolution No. (53) of 2021, administrative penalties shall be enforced against violators of the provisions of Cabinet Resolution No. (58) of 2020 regulating Beneficial Owner Procedures.
The UAE Ministry of Economy has provided clarity and guidance regarding the risks and vulnerabilities of Nominee Shareholders and Directors.
Although a common phenomenon, nominee arrangements pose risks, that must be mitigated to ensure transparency.
For further information related to such nominee arrangements, please refer to the circular issued by the UAE Ministry of Economy.