The Ultimate Beneficial Owner, better known as UBOs Declaration Form, is a new compliance document recently introduced. The requirement for the same became mandatory as a result of Federal Law 20, 2018 which focused on Anti Money Laundering and countering the financing of criminal organizations. As a result, all existing and onboarding companies and organizations must submit the said Form to their relevant regulatory authorities. In this article, we will take a quick look at the Ultimate Beneficial Owner Declaration Form for DMCC companies.
What is the definition of UBO?
As per the new circular, a UBO is any individual who either directly or indirectly holds or controls 25% or more of a business entity within the DMCC zone. The circular came into force in July 2019, and since then, all new business partners must submit a UBO Declaration Form annually. The Form is in a specified format, as released by the DMCC and its submission occurs during the registration or licensing of new Business Partners. Furthermore, all existing partners will also have to submit a UBO Form while renewing their licence.
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What information does the UBO Form disclose?
The DMCC UBO Form contains the following details regarding the UBOs of a Business Partner:
- Full name of the UBO
- Date of Birth
- Nationality
- Passport number
- Residential Address
- Amount of shares held in the company
- Details regarding the UBO’s corporate entities
Whenever UBO changes or gets added, the business partner must provide information regarding the same to the DMCC. Failure to comply with the said rules may even lead to the suspension and termination of the entity’s license. Offshore Jurisdictions require the following supporting documents;
- Share Certificates
- Registry Extract
- Memorandum and Articles of Association
- Confirmation from an Auditor
- Confirmation from a Lawyer or Government official
For enquiries, call +971 45 570 204 / E-mail: [email protected]
Changes in the New Rules
While the older compliance norms only required the company to maintain a UBO register, the new one needs them to file the same. Therefore, companies will now have to provide all the required details in a UBO Form and submit it to the relevant Regulatory Authority during registration. Such a systematic approach will help the DMCC ensure they have all the required information. All of these changes will help in bringing greater transparency to the workings of organizations. Furthermore, all of these are a part of a broader international effort to ensure governments fight money laundering and the financing of terrorist organizations.
For enquiries, call +971 45 570 204 / E-mail: [email protected]
Why KGRN?
If you need more information regarding whether you need to file such a UBO form, or need help filing it, please feel free to reach out to us at KGRN. Thanks to our excellent service, timely delivery, and affordable prices, we have been recognized as one of Dubai’s top audit firms year after year. Partner with us, at KGRN, and never worry about compliance again!
For enquiries, call +971 45 570 204 / E-mail: [email protected]
