Legislation Details
- Full Title: Cabinet Resolution Concerning the Administrative Penalties Imposed on Violators of the Provisions of Cabinet Resolution Concerning the Regulation of Real Beneficiary Procedures
- Law Type: Cabinet Resolution
- Law Number: No. (132) of 2023
- Issued Date: 15 Dec 2023
- Effective Date: 30 Dec 2023
- Official Gazette: No. 766
- Sector: Economy and Business
- Status: Active
- Number of Articles: 19
- Chapters/Parts: 0
- Amendments: 0
Summary
This Cabinet Resolution establishes administrative penalties for violations of the provisions of Cabinet Resolution No. (109) of 2023 Concerning the Regulation of Real Beneficiary Procedures. It defines key terms, outlines the scope of application, specifies the administrative penalties, and provides details on the collection and distribution of penalty revenues. The resolution aims to enhance compliance with real beneficiary disclosure requirements, which are crucial for combating money laundering and terrorist financing in the UAE. (Cabinet Resolution Concerning the Administrative Penalties Imposed on Violators of the Provisions of Cabinet Resolution Concerning the Regulation of Real Beneficiary Procedures, 2023, Art. 1-9)
What is the scope and purpose of this law?
The provisions of this Cabinet Resolution apply to legal persons licensed or registered in the UAE, including non-financial free zones, that violate the requirements of Cabinet Resolution No. (109) of 2023 Concerning the Regulation of Real Beneficiary Procedures. The purpose is to establish administrative penalties for non-compliance with the real beneficiary disclosure obligations. (Cabinet Resolution Concerning the Administrative Penalties Imposed on Violators of the Provisions of Cabinet Resolution Concerning the Regulation of Real Beneficiary Procedures, 2023, Art. 2)
What are the key definitions under this law?
The Cabinet Resolution provides the following key definitions:
- State: United Arab Emirates
- Ministry: Ministry of Economy
- Minister: Minister of Economy
- Decree-Law: Federal Decree-Law No. (20) of 2018 Concerning Combating Money Laundering and the Financing of Terrorism and Illegal Organisations
- Executive Regulations: Cabinet Resolution No. (10) of 2019 concerning the Executive Regulations of Federal Decree-Law No. (20) of 2018
- Registrar: The Competent Authority supervising the Register of commercial names
- Concerned Authorities: Competent Government Authorities implementing the provisions of the Decree-Law and Executive Regulations
- Real Beneficiary: The natural person with ultimate ownership or control over a legal person
- Board Nominee Member: A natural person acting on behalf of another person in a legal person
- Senior Management: The decision-making power of a legal person
- Beneficiary Register: The private register of real beneficiary information
- Partners or Shareholders: The private register of partner or shareholder information
- Written Notice: An official notice sent to a legal person or their representative
(Cabinet Resolution Concerning the Administrative Penalties Imposed on Violators of the Provisions of Cabinet Resolution Concerning the Regulation of Real Beneficiary Procedures, 2023, Art. 1)
What are the main obligations and requirements?
The Cabinet Resolution does not directly impose any obligations or requirements on legal persons. However, it empowers the Registrar to impose administrative penalties on legal persons that violate the provisions of Cabinet Resolution No. (109) of 2023 Concerning the Regulation of Real Beneficiary Procedures. (Cabinet Resolution Concerning the Administrative Penalties Imposed on Violators of the Provisions of Cabinet Resolution Concerning the Regulation of Real Beneficiary Procedures, 2023, Art. 3)
What are the penalties for non-compliance?
The Cabinet Resolution specifies the following administrative penalties for violations of Cabinet Resolution No. (109) of 2023 Concerning the Regulation of Real Beneficiary Procedures: 1. Fines, as outlined in a table attached to the resolution. The fines vary based on the nature and severity of the violation. 2. For third-time violations, in addition to the fine, the Registrar has the right to suspend the commercial license and close the commercial store of the violating legal person. This suspension can be removed after the fine is paid and the violation is corrected. (Cabinet Resolution Concerning the Administrative Penalties Imposed on Violators of the Provisions of Cabinet Resolution Concerning the Regulation of Real Beneficiary Procedures, 2023, Art. 3)
What fees, charges, or financial provisions are specified?
The Cabinet Resolution states that the Cabinet has the power to make any amendments to the fees mentioned in the resolution, whether by addition, deletion, or amendment. (Cabinet Resolution Concerning the Administrative Penalties Imposed on Violators of the Provisions of Cabinet Resolution Concerning the Regulation of Real Beneficiary Procedures, 2023, Art. 4) Additionally, the resolution specifies that the Cabinet shall issue a decision determining the proportions of sharing the proceeds of administrative penalties between the Federal Government and the Governments of the Emirates, based on a proposal from the Minister of Finance in coordination with the Minister of Economy and the Registrar. (Cabinet Resolution Concerning the Administrative Penalties Imposed on Violators of the Provisions of Cabinet Resolution Concerning the Regulation of Real Beneficiary Procedures, 2023, Art. 5)
When did this law come into effect?
This Cabinet Resolution shall be published in the Official Gazette and shall enter into force as of the day following its publication date, which is 30 December 2023. (Cabinet Resolution Concerning the Administrative Penalties Imposed on Violators of the Provisions of Cabinet Resolution Concerning the Regulation of Real Beneficiary Procedures, 2023, Art. 9)
How does this law interact with other UAE legislation?
This Cabinet Resolution is related to the following legislation: - Cabinet Resolution No. (109) of 2023, Concerning the Regulation of Real Beneficiary Procedures - Federal Decree-Law No. (20) of 2018, Concerning Combating Money Laundering and the Financing of Terrorism and Illegal Organisations - Cabinet Resolution No. (10) of 2019, concerning the Executive Regulations of Federal Decree-Law No. (20) of 2018 The Cabinet Resolution Concerning the Administrative Penalties Imposed on Violators of the Provisions of Cabinet Resolution Concerning the Regulation of Real Beneficiary Procedures repeals the previous Cabinet Resolution No. (53) of 2021 on the same subject matter. (Cabinet Resolution Concerning the Administrative Penalties Imposed on Violators of the Provisions of Cabinet Resolution Concerning the Regulation of Real Beneficiary Procedures, 2023, Art. 8)
Source Documents
This article analyses Cabinet Resolution Concerning the Administrative Penalties Imposed on Violators of the Provisions of Cabinet Resolution Concerning the Regulation of Real Beneficiary Procedures for legal research and educational purposes. For the purpose of interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text prevails. This does not constitute legal advice.