The Ministry of Economy conducted a briefing to examine key updates related to the enhancement of the anti-money laundering and counter-financing of terrorism system (AML/CFT) in the country. This includes reviewing Cabinet Decision No. 109 of 2023 on the organization of real beneficiary procedures.
Additionally, a new Cabinet Decision on administrative sanctions was introduced to address violations of the provisions outlined in Cabinet Decision No. 109. The aim is to bolster the competitiveness of the national business environment and reinforce the UAE economy’s leading regional and global position.
Abdullah Ahmed Al Saleh, Undersecretary of the Ministry of Economy, emphasized the significance of developing real beneficiary procedures within the UAE’s AML/CFT system. The recent resolutions represent a pivotal step in supporting the country’s ongoing efforts to combat suspicious financial activity, enhance economic regulation, and promote governance in the national business environment.
Strategic Amendments for Enhanced Transparency, Compliance, and AML Systems in UAE Enterprises
These amendments focus on improving the collection, assessment, and registration of real beneficiary data for private sector enterprises, encompassing those in commercial-free zones. The changes aim to ensure the comprehensive collection and recording of real beneficiary data for nearly 700,000 enterprises operating in various sectors in the UAE.
The amendments introduce new mechanisms for registration authorities, emphasizing a risk-based approach and aligning with international standards for transparency. They also seek to enhance compliance levels, strengthen operational and regulatory mechanisms, and foster effective procedures for all registered companies, promoting the UAE’s economic standing.
Cabinet Resolution No. 109 highlights regulations for real beneficiary access in complex structures and establishes standards and controls for grievances. It mandates registrars to adopt a risk-based approach to improve risk identification, policies, and measures, aligning with integrated national efforts to fortify the country’s AML system.
Holistic Measures: Defining Ownership, Risk Management, and Enforcement for AML/CFT Compliance
The resolution defines the real beneficial owner and lays out steps for their identification, ensuring transparency and compliance. Nominee board members’ duties are clearly defined, including the obligation to inform the legal person of their status and any changes within stipulated timeframes.
Moreover, the resolution underscores the need for a certified risk management-based approach for registered enterprises to prevent money laundering and terrorism financing. It mandates the establishment of a Registrar’s AML/CFT unit to implement policies and submit real-time reports to the Ministry.
The accompanying Cabinet Decision on administrative sanctions outlines penalties for violators, ranging from warnings to financial penalties and license suspension based on registrars’ discretion.
Al Saleh affirms the Ministry’s commitment to strengthening the national AML/CFT system, raising awareness, and ensuring compliance among companies. This initiative aims to enhance the UAE’s status as a global economic hub.
