Atik Munshi told Gulf News about risks faced by businesses in the UAE if beneficiaries are not disclosed
"Failure to comply could result in fines ranging up to Dh100,000 (over $ 27,000), including suspension of trade licenses for a period between one month to 12," Atik Munshi, Managing Partner of Enterprise House / FinExpertiza UAE, told Gulf News.
"The process of submission of the UBO requirement is swift and efficient. But if an entity has failed to furnish its UBO requirements within the stipulated period, the time and process regarding acceptance would be solely dependent on the concerned local authority. All entities unless exempted are required to submit to the authority a "statement of UBO", "statement of shareholders" register", and if any, a "statement of nominee shareholder"," said Atik Munshi.
The new strict requirements of the UAE for the disclosure of information about the ultimate beneficial owners (UBO) by businesses are aimed to increase the transparency of business activities and prevent money laundering and financing of terrorism. Companies were to send information about their ultimate owners by July 7; in the event of delays, penalties would be imposed. Entities wholly owned by the local or federal government, or any-other companies wholly-owned by such companies, and entities in financial free zones are exempted from the UBO Regulations.