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UBO Services

Ultimate Beneficial Ownership (UBO) Compliance

Ultimate Beneficial Ownership (UBO) compliance is a crucial aspect of anti-money laundering (AML) efforts in the UAE, driven by Cabinet Decision No. 58 of 2020. This regulation mandates that companies in the UAE disclose details about their ultimate beneficial owners to ensure transparency and prevent financial crimes. Here’s a detailed overview of UBO compliance and how Mantraa Advisory Service   can assist you in meeting these requirements.

Definition of Ultimate Beneficial Owner

According to Cabinet Decision No. 58 of 2020, an ultimate beneficial owner is defined as:

A Natural Person with Ownership

Someone who owns or controls directly or indirectly at least 25% of the share capital.

 

A Natural Person with Voting Rights

Someone who has voting rights for at least 25% of the shares.

 

A Natural Person with Ultimate Control

 Someone who has ultimate control over the legal person.

 

Key Requirements for UBO Compliance

Entities must adhere to several requirements to ensure UBO compliance:

  1. Real Beneficiary Register (RBR):
    • Contents: Must include details such as full name, nationality, date & place of birth, residence, passport/ID number, issuance country, and dates of issuance/expiry. It should also document when a person becomes or ceases to be a real beneficiary.
    • Submission: After preparation, the RBR must be submitted to the relevant regulatory authority.
  2. Partners or Shareholders Register (PSR):
    • Contents: Should include details of partners or shareholders, such as the number and class of shares they hold and the date they became a partner or shareholder.
    • Updates: Must be updated within 15 days of any changes.
  3. Nominee Director / Manager Register:
    • Contents: Includes details of directors/managers acting under the instructions of another person.
    • Submission: Prepare and maintain this register, and submit it as required.
  4. Requirements for Companies under Liquidation:
    • Submission: Liquidating companies must submit the RBR & PSR or their copies to the Registrar within 30 days of the liquidator’s appointment.
    • Record Maintenance: Liquidators or administrators must maintain the records for at least five years from the date of liquidation.
  5. Exemptions:
    • Companies registered in financial free zones (e.g., DIFC, ADGM) and those owned by the Federal government or its subsidiaries are exempt from UBO requirements.

Penalties for Non-Compliance

Failure to comply with UBO regulations can result in substantial penalties:

  1. Failure to Create Registers:
    • AED 50,000 (first instance)
    • AED 100,000 and trade license suspension for 12 months (repeated violations)
  2. Failure to Include Mandatory Details:
    • AED 20,000 (first instance)
    • AED 40,000 and trade license suspension for at least six months (repeated violations)
  3. Inaccurate or Inadequate Data Maintenance:
    • AED 10,000 (first instance)
    • AED 20,000 and trade license suspension for at least one month (repeated violations)
  4. Failure to Disclose Director Details:
    • AED 20,000 (first instance)
    • AED 40,000 and restriction of board members’ powers (repeated violations)
  5. Failure to Create or Maintain PSR:
    • AED 50,000 (first instance)
    • AED 100,000 and trade license suspension for 12 months (repeated violations)
  6. Failure to Provide Additional Information:
    • AED 5,000 (first instance)
    • AED 10,000 and trade license suspension for at least one month (repeated violations)
  7. Failure to Issue Shareholder Guarantees:
    • AED 5,000 (first instance)
    • AED 10,000 for repeated violations
  8. Failure to Disclose Shares and Stocks Issued:
    • AED 5,000 (first instance)
    • AED 10,000 and restriction of board powers (repeated violations)
  9. Failure to Provide Registers to Liquidators:
    • AED 5,000 (first instance)
    • AED 10,000 and trade license suspension for at least one month (repeated violations)
  10. Failure to Maintain Records Post-Liquidation:
    • AED 20,000 (first instance)
    • AED 40,000 for repeated violation

How Mantraa Advisory Service Can Assist

Mantraa Advisory Service   offers expert assistance in UBO compliance through the following services:

Preparation of Registers:

Assist in the accurate preparation of the Real Beneficiary Register (RBR), Partners or Shareholders Register (PSR), and Nominee Director/Manager Register.

Submission and Filing:

Manage the submission of all required registers to regulatory authorities, ensuring timely compliance.

Updates and Maintenance:

Ensure that all registers are kept up-to-date and accurately reflect any changes in company structure or ownership.

Compliance Audits:

Conduct regular audits to ensure ongoing compliance with UBO regulations.

Advisory Services:

Provide expert advice on UBO requirements and help implement processes to avoid penalties.

Support for Companies Under Liquidation:

Guide companies through the process of maintaining and submitting registers during liquidation.

Get In Touch

For expert assistance with your UBO Services , reach out to Mantraa Advisory Service:

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