Ministry of Economy and AML/CFT Executive Office organize workshop to develop ultimate beneficial owner framework

Workshop attended by 39 entities including licensing authorities and company registrars in the UAE

The Ministry of Economy, in collaboration with the Executive Office of Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT), organized an extensive two-day workshop aimed at developing the organizational and corporate frameworks of the ultimate beneficial owner (UBO) data system in the UAE. This will be achieved by providing and implementing a comprehensive guide designed to enhance company registrars’ capabilities in analyzing and dealing with risks; developing the guidelines and evidence for suspicious activity reporting; and specifying the procedures for field and office inspections of licensed facilities and the Designated Non-Financial Businesses and Professions (DNFBP) sector. The sector includes real estate agents and brokers, dealers of precious stones and metals, certified accountants and auditors, and corporate service providers.

The latest workshop follows the first and second workshops that were held in June and July of this year, in line with the efforts of the Ministry and its partners to develop the country’s AML/CFT system and UBO policies, following the national legislation in force in this regard and in accordance with the international best practices and the requirements of the Financial Action Task Force (FATF). The workshop was attended by all the members of the subcommittee of company registrars in the UAE, comprised of representatives of licensing authorities and a total of 39 registrars from all economic development departments and free zones in the country.

In her speech on behalf of H.E. Abdullah Sultan Al Fann Al Shamsi, Assistant Undersecretary for the Monitoring & Following Up Sector at the Ministry of Economy, Safeya Hashim Al Safi, Director of the Anti-Money Laundering Department, Ministry of Economy, and Vice Chairman of the Registrars Committee, said that the UAE has achieved the highest levels of compliance by demonstrating its commitment to implementing the AML/CFT measures with the licensing and registration authorities in the country. These efforts have contributed to strengthening the national economy, enhancing its preparedness to deal with money laundering crimes, and reinforcing its reputation regionally and globally.

Safeya Al Safi added that the workshop is of key significance as a comprehensive guide for the UBO data system is being followed, and that it will support the capabilities of company registrars in following a risk-based approach that stems from effective risk analysis and categorization methods. The guide also defines the mechanism for applying due diligence for legal persons and licensed establishments within the framework of a corporate system for each registrar, in addition to coordination and collaboration with other registrars at local emirate or state level.

The workshop discussed a number of topics from the AML/CFT guide for company registrars in the country, which was recently released through the subcommittee for company registrars in the UAE. These included best practices in the licensing inspection and data verification procedures and UBO data procedures in addition to enforcement processes. Inspection and data verification best practices were presented to a number of registrars in the country as models for exchange of experiences. In addition, most prominent warning signs and patterns of AML/CFT crimes through exploitation of legal persons, and the standards, controls and legal procedures followed in this regard were discussed as well.

Furthermore, the Ministry’s working team showcased the best practices and methods for field and office inspections for checking beneficial owner data, as well as the procedures for the DNFBPs sectors to ensure the efficiency of inspections and the comprehensive implementation of legislation in a way that would support the growth of national business sector.