Corporate Compliance & Governance
What Are the Key Benefits of Corporate Compliance and Governance?
- Incorporating business practices with corporate compliance regulations enhances a company’s adaptability and resilience in changing environments and secures its long-term sustainability
- Structured compliance and governance improve the organization’s decision-making effectiveness, help minimize wastage and corruption, and prevent mismanagement for better performance and efficient utilization of resources
- It helps to ensure the company follows all the laws and regulations, which keeps it safe from potential penalties, financial setbacks, and any negative impact on its reputation
- Strict compliance with the law and regulations reduces the chance of being liable for financial losses or harm to a company’s reputation. This enhances the organization’s public image and increases its market value
Key Compliance Requirements for Designated Non-Financial Businesses and Professions (DNFBPs)
DNFBPs include a variety of industries, such as real estate brokers, accountants, auditors, Lawyers, notaries, and precious metals or precious stones dealers etc. These businesses are significant within the existing structure of the financial system, as they participate in executing fairly significant financial operations. Due to the risks of Money Laundering (ML), Terrorist Financing (TF), and Proliferation Financing (PF), DNFBPs in the UAE are subjected to highly restrictive regulatory measures. These laws should be strictly followed to uphold the credibility of the nation’s economy and safeguard it from unlawful practices.
Who Benefits from our Corporate Compliance and Governance Services?
Our compliance and governance services are ideal for businesses and individuals in a variety of industries, including:
- Startups and Entrepreneurs: Emirates Advisory helps new businesses start on the right track of compliance to avoid expensive cases against the company in the future, maintain the uniqueness of their brand, and avoid future legal repercussions.
- Large Enterprises and Multinationals: We assist large companies in navigating compliance challenges across different jurisdictions, enabling them to keep up with ever-changing global laws.
- Financial Institutions & Investors: Our solutions are designed to assist financial institutions in meeting the strictest regulations, such as KYC and AML while protecting their operations from financial crime.
- Professional Services Firms: We assist professional companies in ensuring the transparency of their operations and adhering to international standards of compliance, aligning their operations with industry best practices.
- Non-Governmental Organizations (NGOs): Our expertise helps ensure that NGOs are in compliance with the governance frameworks and regulatory standards, thus promoting confidence and trust among all stakeholders.
Why Corporate Compliance & Governance Matters
In today’s business landscape, corporate compliance is essential rather than optional. Effective compliance and governance protect businesses from legal risks while enhancing their reputation and operational efficiency. Emirates Advisory is dedicated to guiding you through every phase, ensuring you meet all local and international regulations necessary for growth and sustainability.
Our Services
1. KYC Compliance & Due Diligence Services
What is KYC Compliance & Due Diligence and why is it important?
KYC Compliance & Due Diligence is essential to ensure your business complies with UAE regulations. KYC enables businesses to adhere to the agreed customer identification process that helps in combating financial crimes like fraud and money laundering. Due diligence complements this by thoroughly assessing the risks associated with individuals and third parties.
This process is essential to identify potential risks early, encourage trust, and maintain transparency with stakeholders. By implementing KYC compliance and due diligence, companies can avoid lawsuits and costly mistakes while strengthening relationships with customers, regulators, and other stakeholders.
Non-adherence to KYC rules and regulations and failure to follow proper due diligence can lead to fines and a loss of reputation. Attention to these fields assists organizations in sustaining competitive advantage and guaranteeing their sustainable operations within the context of legal conditions.
Our KYC Compliance Services
- Comprehensive KYC documentation and verification.
- Due diligence assessments for new and existing clients.
- Risk profiling and transaction monitoring.
- Ongoing compliance reviews and regulatory reporting.
2. Anti–Money Laundering (AML) Services
What is AML and Why is it Important?
Anti-Money Laundering (AML) regulations in the UAE aim to prevent money laundering and terrorist financing by safeguarding the financial system’s integrity. UAE Central Bank and law enforcement affirm that this law applies to banks, insurance companies, banks, and non-financial businesses.
AML is critical to protect the financial system from abuse by unlawful practices. Financial institutions should implement strategies to identify and mitigate risks. Failure to comply can result in severe penalties, including fines and imprisonment.
The AML regulations also apply to designated non-financial businesses (DNFBPs), which require customer identity checks, transaction monitoring, and record keeping to prevent criminal abuse.
Our Anti–Money Laundering (AML) Services
- A customized AML process for compliance and risk protection.
- Risk assessment using business solutions for financial vulnerabilities.
- Assist in the submission of Suspicious Activity Reports (SARs).
- Regular audits to ensure compliance with changing AML regulations.
3. Ultimate Beneficial Owner (UBO) Services
What is UBO and Why is it Important?
The Ultimate Beneficial Owner (UBO) law in the UAE intends to establish and substantiate the real nature of ownership of a business entity through direct or indirect shareholding or effective control of management. Companies must keep exact records of UBOs, including their names and dates of birth, nationalities, and addresses.
This regulation is necessary to ensure the transparency of ownership control programs and to prevent money laundering and terrorist financing. It helps prevent companies from being misused for illegal activities.
Failure to abide by the UBO regulation attracts severe penalties, including substantial fines or possibly revocation of business licenses. This underlines the significance of the companies in the UAE to observe these regulations to maintain their legitimacy and stay away from the legal consequences.
Our Ultimate Beneficial Owner (UBO) Services
- Identification and reporting of company controllers.
- Assistance with UBO filings to relevant authorities.
- Compliance checks on UBOs to meet regulatory standards.
- Regular updates and monitoring for accurate UBO information.
Who is an Ultimate Beneficial Owner?
An Ultimate Beneficial Owner (UBO) is a person who controls or directly owns at least 25% of the company’s shares or has voting rights over a specific percentage. This influence can also mean that having an indirect ownership of a company through another company, entity, or structure that affects the business’s operational decisions, financials, or transactions.
Ultimate Beneficial Owner v. Beneficial Owner
Ownership can generally be divided into two categories: legal ownership and beneficial ownership. A legal owner is the person or company whose name and ownership rights are officially registered. On the other hand, a beneficial owner is the one who benefits from the profits or has the authority to manage the property, even though the legal title is held by someone else. For instance, a registered shareholder may legally own shares under their name but could hold them for the benefit of a beneficial owner through a trust or nominee arrangement.
In a company, there may be multiple beneficial owners. However, the UBO is often the natural person who exercises the most control in the Company and receives the biggest benefits of the Company’s operations. Thus, compared to other beneficial owners, the UBO might not necessarily be directly identified as the owner; however, they control the business.
Ultimate Beneficial Owner Regulations (UBO’s Regulations) in the UAE
The regulations governing Ultimate Beneficial Owners (UBOs) are outlined in UAE Cabinet Resolution No. (58) of 2020 (“Regulations”), which sets forth mandatory compliance requirements for entities in the UAE to regulate UBO procedures.
All companies licensed and registered in the UAE, with the exception of those wholly owned by local or federal government entities or those based in the DIFC or ADGM financial free zones, must maintain accurate and updated registers containing details of their Ultimate Beneficial Owners, beneficial owners, shareholders, and nominee directors.
Key Requirements for UBO Registers
Companies’ Registrars must maintain the record of UBO such as:
- Full name, nationality, and date and place of birth.
- Place of residence or notice address.
- Valid passport or identification number, including the country of issuance and the date of issue and expiry.
- The basis on which the person is identified as a beneficiary.
- The date when the person became a UBO, and if applicable, the date when they ceased to be one.
Companies’ Registrars must keep an updated Beneficial Owner Record, including details of shareholders, partners, directors, and nominee directors, as follows:
For each shareholder/partner:
- Number and class of shares/equity held, with attached voting rights.
- Date on which shares/equity were acquired.
- Personal details for natural persons as required for UBOs.
For legal entity shareholders/partners:
- Name, legal form, and memorandum/articles of association.
- Address of main office; in case of foreign entity, include the UAE legal representative’s name and address.
- Details of senior management (name, passport/ID information, and validity).
Confidentiality Measures
To address concerns about data privacy, the Ministry has assured organizations that any data submitted will be kept strictly confidential. The information will not be made available to any other individual for commercial use.
However, in the case of an official investigation, authorized organizations may access the data if necessary. Such access will be governed by internal policies and regulations to ensure the confidentiality and integrity of the submitted information are maintained.
Why Choose Emirates Advisory?
We understand the need for strict corporate compliance requirements in a UAE-regulated business environment. With expertise in KYC and due diligence services, we guarantee that your business meets the top standards of transparency and accountability. Emirates Advisory’s AML and UBO solutions are designed to align with UAE rules & regulations to safeguard your business against financial risks and regulatory violations.
We leverage cutting-edge tools and technologies and a deep understanding of compliance frameworks to deliver bespoke solutions that meet your goals.
Emirates Advisory assists individuals and corporations in corporate compliance and governance to foster trust, increase efficiency, and ensure that the companies avoid costly penalties and lawsuits.