Key highlights

• The New Resolution includes all entities that are registered and licensed in the UAE. However, it specifically excludes entities registered within Financial Zones such as DIFC and ADGM, as well as government entities and their subsidiaries from its regulatory provisions.
• The competent authority overseeing the register of commercial names for various establishments within the relevant emirate and/or free zone, referred to as the "Registrar," has been granted expanded discretion and responsibility in identifying the Real Beneficial Owner by taking into account a risk-based approach, particularly in instances involving complex structures. As per the New Resolution, every applicable Registrar is mandated to prevent the exploitation of entities within its jurisdiction for money laundering and terrorism financing. This obligation involves implementing specific measures outlined in the Resolution to safeguard against such illicit activities.
• The introduction of the Supreme Committee as outlined in the New Resolution signifies a pivotal development in overseeing the anti-money laundering strategy and combating terrorism financing.
• Cabinet Resolution No. (132) of 2023 provides a range of administrative penalties for violations of the New Resolution. Registrars now have the authority to temporarily suspend commercial licenses or close entities for repeated violations until the fine is paid. The Resolution has provided further details on penalties, sometimes breaking down the penalties outlined in the previous Cabinet Resolution into more specific violations. Additionally, it imposes a 14-day deadline for entities to respond to any requests for additional information from the relevant Registrar. Also, it introduces a penalty for entities that fail to disclose the ownership layers within complex structures.