The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) has imposed fines amounting to AED 610,000 (approximately $166,000) on 23 entities for violations of the Common Reporting Standard (CRS) Regulations 2017 and/or the Foreign Account Tax Compliance Act (FATCA) Regulations 2022.
These regulations are part of international frameworks requiring financial institutions to collect and report information on foreign account holders, aiming to combat global tax evasion.
The UAE’s intergovernmental agreements enhance global tax transparency by facilitating the automatic exchange of financial account data between jurisdictions.
The FSRA’s enforcement actions addressed various compliance failures, including:
•Not submitting risk assessments
•Failing to provide the required annual information returns
•Neglecting due diligence procedures
•Reporting incomplete or inaccurate information
•Not collecting valid self-certification forms
Emmanuel Givanakis, CEO of the FSRA at ADGM, stated: “ADGM is committed to upholding international tax reporting standards. These enforcement outcomes reflect the FSRA’s firm support for the UAE’s commitment to financial transparency and alignment with global commitments to information exchange.”
He added, “We are dedicated to identifying and addressing practices that fall short of our commitment to combat tax evasion by implementing robust and effective regulations in line with leading global standards of compliance and reporting responsibility.”
