In the past few years the number of reports featuring indications of financial frauds has increased dramatically, and countering such frauds has become top priorities for regulators in recent years. Fraudulent parties use off-shore accounts to mask their activity and investigators regularly trace suspicious transactions to fictional addresses or the private homes of unsuspecting residents.
While the exact specifications vary depending on the jurisdiction and fraud regulation standards, companies must supply full and up-to-date information that includes the firm’s registration number, name, address, official status and the names of top management employees for verification of legitimacy and accuracy – to avoid falling under the regulatory purview of suspicious activity.
With an industry-wide clampdown for banks and corporations to know who they do business with, this is why firms or lenders now go through UBO or ‘Ultimate Beneficial Owner’ checks or disclose their UBO identity for any of their business transactions, failure to do so resulting in steep fines.
In the UAE, the government recently replaced a resolution relating to disclosure guidelines for any Ultimate Beneficial Owner, which covers the most updated requirements for entities in UAE to disclose its beneficial owners, intended to enhance the transparency of the UAE registered entities apart from that the DMCC authorities also had made it mandatory for all its entities to disclose the ultimate beneficial owner.
The UAE Cabinet passed a resolution this year, compulsorily seeking all firms to keep in their main offices registers on partners or shareholders, stating the information about the ownership interests and voting rights held by each individual.
Businesses are also asked to keep similar register on the top shareholder or main investor (25 per cent stake or more) of the company, while providing the relevant reason behind being majority owners of the company and directors, and date since they become one. Similarly, similar registers are to be kept for all other director of the company and nominated members, if any.
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Apart from the above services we are also helping the companies and businesses in the UAE to file their ESR notification.
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