Ministry of Economy warned on Monday that imposition of fines up to Dh100,000 and other penalties for non-compliance with the “ultimate beneficiary owner (UBO) procedures” will begin from July 8.
It has already begun implementing the first phase of administrative penalties, including written warnings to non-compliant establishments from July 1, 2021.
“The penalties begin with the issuance of a written warning and if the non-compliance by an establishment continues, including but not limited to, a fine of Dh100,000, as well as additional administrative penalties such as the suspension of the license for a year or restrictions on the powers of the board of directors. Establishments can appeal against the punitive measures within the specified legal period of 30 days from the date of notification of the violation, in accordance with the decision,” said the statement.
The ministry explained that the detection of violations will be carried out through a desk inspection, which is the examination of an establishment’s records with the licensing authority to ascertain the extent of its commitment to providing the required ultimate beneficial owner data.
All establishments that have not yet adopted the required ultimate beneficial owner procedures should immediately prepare ultimate beneficial owner data and maintain it within their records in order to avoid violations, the MOE said.
In the event of any changes to the ultimate beneficial owner data of an establishment, the establishment is required to notify the relevant licensing authority within 15 days about the changes in order to avoid the administrative penalties resulting from that. “The establishments shall also appoint a person residing in the country with whom the licensing authority can communicate with, in relation to the establishment’s basic information, ultimate beneficial owner data, and other information,” the MOE said.