Legislation Details
- Full Title: Cabinet Resolution Regulating the Real Beneficiary Procedures
- Law Type: Cabinet Resolution
- Law Number: No. (109) of 2023
- Issued Date: 06 Nov 2023
- Effective Date: 16 Nov 2023
- Official Gazette: No. 763
- Sector: Economy and Business
- Status: Active
- Number of Articles: 59
- Chapters/Parts: 0
- Amendments: 0
Summary
This Cabinet Resolution regulates the procedures for determining and maintaining information on the real beneficiaries of legal persons licensed or registered in the United Arab Emirates. It aims to contribute to the development of the UAE's business environment and economic standing by establishing effective mechanisms for identifying and registering real beneficiaries. The resolution imposes obligations on legal persons and the registrar to ensure transparency and accurate record-keeping regarding the ultimate ownership and control of businesses operating in the UAE. (Cabinet Resolution Regulating the Real Beneficiary Procedures, 2023, Art. 2) The law is significant for businesses and individuals in the UAE, as it aligns the country's regulatory framework with international standards on anti-money laundering and combating the financing of terrorism. By requiring legal persons to identify and disclose their real beneficiaries, the resolution enhances transparency and helps authorities monitor and mitigate financial crimes. Compliance with the resolution's provisions is crucial for legal persons to maintain their licenses and registrations in the UAE. (Cabinet Resolution Regulating the Real Beneficiary Procedures, 2023, Art. 2)
What is the scope and purpose of this law?
The provisions of this Cabinet Resolution apply to the registrar and all legal persons licensed or registered in the UAE, with the exception of companies wholly owned by the federal or local government, financial free zones, and government partners. (Art. 3) The resolution aims to contribute to the development of the UAE's business environment and economic standing by regulating the minimum obligations of the registrar and legal persons, including licensing or registration procedures and the organization of real beneficiary and partners/shareholders registers. (Art. 2)
What are the key definitions under this law?
The Cabinet Resolution provides the following key definitions:
- Real Beneficiary: The natural person to whom ultimate ownership or control of a legal person, directly or indirectly, ultimately vests. This includes the person on whose behalf transactions are conducted or who exercises ultimate effective control. (Art. 1)
- Board Nominee Member: A natural person who acts in accordance with the directions, instructions, or will of another person, who is officially appointed or holds a position in a legal person and is usually a representative of shareholders, members, or other interested parties. (Art. 1)
- Senior Management: The decision-making power of a legal person. (Art. 1)
- Real Beneficiary Register: The private register maintained by a legal person that includes information on its real beneficiaries. (Art. 1)
- Partners or Shareholders Register: The private register maintained by a legal person that includes information on its partners or shareholders. (Art. 1)
(Cabinet Resolution Regulating the Real Beneficiary Procedures, 2023, Art. 1)
What are the main obligations and requirements?
The Cabinet Resolution imposes several key obligations on legal persons licensed or registered in the UAE: 1. Provide the registrar with basic information, such as name, legal form, address, and details of senior management, when applying for a license or registration. (Art. 4) 2. Take reasonable measures to obtain and maintain accurate, up-to-date information on their real beneficiaries. (Art. 6) 3. Maintain a real beneficiary register and update it within 15 days of any changes. (Art. 8) 4. Maintain a partners or shareholders register and update it within 15 days of any changes. (Art. 10) 5. Inform the registrar of any changes in their data, including changes to real beneficiaries, within 15 days. (Arts. 15, 11) (Cabinet Resolution Regulating the Real Beneficiary Procedures, 2023, Arts. 4, 6, 8, 10, 15, 11)
What licensing, registration, or approval requirements exist?
The legislation does not specify any additional licensing, registration, or approval requirements beyond those mentioned in Article 4, which outlines the basic information that legal persons must provide to the registrar when applying for a license or registration. (Cabinet Resolution Regulating the Real Beneficiary Procedures, 2023, Art. 4)
What rights and protections does this law provide?
The Cabinet Resolution does not explicitly outline any specific rights or protections granted to individuals or businesses under its provisions. The law focuses on establishing obligations and requirements for legal persons and the registrar regarding the identification and registration of real beneficiaries. (Cabinet Resolution Regulating the Real Beneficiary Procedures, 2023)
Which authorities or bodies are responsible for enforcement?
The Cabinet Resolution designates the following authorities and bodies as responsible for enforcement and implementation: 1. The Registrar: The competent authority supervising the register of commercial names of different establishments registered in the UAE. (Art. 1) 2. The Concerned Authority: The competent government authority responsible for implementing any of the provisions of the Anti-Money Laundering and Combating the Financing of Terrorism Decree-Law and its Executive Regulations. (Art. 1) 3. The Supreme Committee: The Supreme Committee for supervising the National Strategy on Anti-Money Laundering and the Financing of Terrorism. (Art. 1) (Cabinet Resolution Regulating the Real Beneficiary Procedures, 2023, Art. 1)
What are the penalties for non-compliance?
The Cabinet Resolution does not specify any penalties for non-compliance with its provisions. The legislation does not outline any imprisonment terms, fine amounts, or other sanctions for legal persons or individuals who fail to meet the requirements set forth in the resolution. (Cabinet Resolution Regulating the Real Beneficiary Procedures, 2023)
What fees, charges, or financial provisions are specified?
The Cabinet Resolution does not mention any fees, charges, or other financial provisions related to the real beneficiary procedures it regulates. The legislation does not specify any financial thresholds or requirements for legal persons or the registrar. (Cabinet Resolution Regulating the Real Beneficiary Procedures, 2023)
What exemptions or exceptions apply?
The Cabinet Resolution provides the following exemptions from its provisions: 1. Companies wholly owned by the federal or local government, or any other companies wholly owned by those companies. (Art. 3) 2. Financial free zones. (Art. 3) 3. Government partners. (Art. 3) (Cabinet Resolution Regulating the Real Beneficiary Procedures, 2023, Art. 3)
How are disputes resolved under this law?
The Cabinet Resolution does not specify any dispute resolution mechanisms or procedures. The legislation does not outline how disputes related to the real beneficiary register or other provisions of the resolution would be handled. (Cabinet Resolution Regulating the Real Beneficiary Procedures, 2023)
What are the key deadlines and time limits?
The Cabinet Resolution establishes the following key deadlines and time limits: 1. Legal persons must maintain a real beneficiary register within 60 days from the date of the resolution's implementation or the date of the legal person's existence. (Art. 8) 2. Legal persons must update the real beneficiary register within 15 days of being informed of any changes. (Art. 8) 3. Board nominee members must inform the legal person of their status within 15 days of acquiring the position, or within 30 days of the resolution's publication if they already held the position. (Art. 9) 4. Board nominee members must inform the legal person of any changes to their data within 15 days. (Art. 9) (Cabinet Resolution Regulating the Real Beneficiary Procedures, 2023, Arts. 8, 9)
How does this law interact with other UAE legislation?
The Cabinet Resolution references the following related UAE legislation: 1. Federal Law No. (1) of 1972, Concerning the Competences of Ministries and the Capacities of Ministers, and its amendments. 2. Federal Decree-Law No. (20) of 2018, Concerning Anti-Money Laundering and Combating the Financing of Terrorism and the Financing of Illegal Organisations, and its amendments. 3. Federal Decree-Law No. (32) of 2021, Concerning Commercial Companies. 4. Federal Decree-Law No. (37) of 2021, Concerning the Commercial Register. 5. Cabinet Resolution No. (58) of 2020, Regulating the Real Beneficiary Procedures. (Cabinet Resolution Regulating the Real Beneficiary Procedures, 2023)
When did this law come into effect?
The Cabinet Resolution Regulating the Real Beneficiary Procedures was issued on 06 November 2023 and came into effect on 16 November 2023, as stated in the legislation. The resolution was published in the Official Gazette No. 763. (Cabinet Resolution Regulating the Real Beneficiary Procedures, 2023, Arts. 23, 1)
Source Documents
This article analyses Cabinet Resolution Regulating the 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.