Cabinet Resolution No. (53) of 2021
Concerning the Administrative Penalties for Violators of the Provisions of the Cabinet Resolution
No. (58) of 2020 on the Regulation of Procedures for the Ultimate Beneficial Owner
The Cabinet:
- Having perused the Constitution,
- And Federal Law No. (1) of 1972 concerning the Competencies of Ministries and the Powers of Ministers, and its amendments,
- And Federal Law No. (14) of 2016 concerning Violations and Administrative Penalties in the Federal Government,
- And Federal Decree-Law No. (20) of 2018 on Anti-Money Laundering and Combating the Financing of Terrorism and Financing of Illegal Organizations,
- And Federal Decree-Law No. (26) of 2019 on Public Finance,
- And Cabinet Resolution No. (10) of 2019 regarding the Implementing Regulation of Decree-Law No. (20) of 2018 on Anti-Money Laundering and Combating the Financing of Terrorism and Financing of Illegal Organizations,
- And Cabinet Resolution No. (58) of 2020 on the Regulation of Procedures for the Ultimate Beneficial Owner,
- And based on the proposal of the Minister of Finance, and the approval of the Cabinet,
Has decided:
Article (1)
Definitions
For the purposes of implementing the provisions of this Resolution, the following words shall have the meanings assigned to each, unless the context requires otherwise:
The State: The United Arab Emirates.
The Ministry: The Ministry of Economy.
The Minister: The Minister of Economy.
The Decree-Law: Federal Decree-Law No. (20) of 2018 on Anti-Money Laundering and Combating the Financing of Terrorism and Financing of Illegal Organizations.
The Implementing Regulation: Cabinet Resolution No. (10) of 2019 regarding the Implementing Regulation of Decree-Law No. (20) of 2018 on Anti-Money Laundering and Combating the Financing of Terrorism and Financing of Illegal Organizations.
The Licensing Authority: The competent authority for licensing or registering a legal person in the State.
The Registrar: The entity responsible for supervising the commercial names register for various types of establishments registered in the State, and this includes the Licensing Authority.
The Ultimate Beneficial Owner: The natural person who ultimately owns or controls, or by other indirect means, as well as the natural person on whose behalf transactions are conducted or who exercises ultimate effective control over a legal person, as defined in accordance with the text of Article (5) of Cabinet Resolution No. (58) of 2020 on the Regulation of Procedures for the Ultimate Beneficial Owner.
The Register of Ultimate Beneficial Owner: A special register for the Ultimate Beneficial Owners in the legal person which includes all their data.
The Register of Partners or Shareholders: A special register for the partners or shareholders in the legal person which includes all their data.
Article (2)
Scope of Application
The provisions of this Resolution shall apply to legal persons licensed or registered in the State, including non-financial free zones, that violate the provisions of Cabinet Resolution No. (58) of 2020 on the Regulation of Procedures for the Ultimate Beneficial Owner.
Article (3)
Administrative Penalties
Without prejudice to any penalty or measure stipulated in the Decree-Law and other relevant legislation, the Minister or his authorized representative from the Licensing Authorities may impose administrative penalties on violators of the provisions of the aforementioned Cabinet Resolution No. (58) of 2020, in accordance with the violations and penalties set out in the table attached to this Resolution.
Article (4)
Amendment of Fines
The Cabinet is competent to make any amendments to the fines stipulated in this Resolution, whether by addition, deletion, or modification.
Article (5)
Shares of the Federal Government and Emirate Governments from the Revenue of Administrative Penalties
The Cabinet shall issue a resolution determining the proportions for sharing the revenue from the administrative penalties stipulated in this Resolution between the Federal Government and the Emirate Governments, based on a proposal from the Minister of Finance and after coordination with the Minister and the Licensing Authorities.
Article (5)
Final Provisions
A. The fines stipulated in this Resolution shall be collected by the means determined by the Ministry of Finance.
B. For the purpose of collecting the administrative fines stipulated in this Resolution, a part of a day shall be considered a full day, and a part of a month shall be considered a full month.
Article (6)
Implementing Decisions
The Minister, in coordination with the Licensing Authority, shall issue the necessary decisions and procedures to implement the provisions of this Resolution.
Article (7)
Publication and Enforcement
This Resolution shall be published in the Official Gazette and shall come into force on the day following the date of its issuance.
Originally signed by His Highness Sheikh
Mohammed bin Rashid Al Maktoum
Prime Minister
Issued by us:
On: 11 / Shawwal / 1442 H
Corresponding to: 23 / May / 2021 AD
Table Attached to Cabinet Resolution No. (53) of 2021 Concerning the Administrative Penalties for Violators of the Provisions of Cabinet Resolution No. (58) of 2020 on the Regulation of Procedures for the Ultimate Beneficial Owner
| No. |
Violation |
Legal Reference |
Administrative Penalties |
| Cabinet Resolution No. (58) of 2020 |
First Time Offense |
Second Time Offense |
Third Time Offense |
| 1 |
Failure of the legal person to establish and maintain the Register of the Ultimate Beneficial Owner. |
Article (8) |
Written Warning |
AED 50,000 and a warning to the legal person to rectify its status within (30) days from the date of the violation. |
AED 100,000 and suspension of the commercial license for a period of not less than (12) months. |
| 2 |
Failure to include the data stipulated in Clause (2) of Article (8) of the aforementioned Cabinet Resolution No. (58) of 2020. |
Article (8) |
Written Warning |
AED 20,000 and a warning to the legal person to rectify its status within (15) days from the date of the violation. |
AED 40,000 and suspension of the commercial license for a period of not less than (6) months. |
| 3 |
Failure of the legal person to maintain adequate, accurate, specific, and updated data on the Ultimate Beneficial Owner, or failure of the legal person to correctly register the details of the beneficial ownership of the Ultimate Beneficial Owner. |
Article (6) and Article (7) |
Written Warning |
AED 10,000 and a warning to the legal person to rectify its status within (15) days from the date of the violation. |
AED 20,000 and suspension of the commercial license for a period of not less than one month. |
| 4 |
Failure of the legal person to submit the data referred to in Article (10) - of the aforementioned Cabinet Resolution No. (58) of 2020 - related to the data of the nominal director or board member to the Registrar. |
Article (9) |
Written Warning |
AED 20,000 and a warning to the legal person to rectify its status within (15) days from the date of the violation. |
AED 40,000 and restricting the powers of the board members or directors proven to be responsible for the violation. |
| 5 |
Failure of the legal person to establish the Register of Partners or Shareholders. |
Article (10) |
- |
AED 50,000 and a warning to the legal person to rectify its status within (60) days from the date of the violation. |
AED 100,000 and suspension of the commercial license for a period of not less than (12) months. |
| 6 |
Failure of the legal person to maintain the detailed data of each partner or shareholder in the Register of Partners or Shareholders. |
Article (10) |
Written Warning |
AED 30,000 and a warning to the legal person to rectify its status within (15) days from the date of the violation. |
AED 60,000 and suspension of the commercial license for a period of not less than (6) months. |
| 7 |
Failure of the legal person to submit the data of the Register of the Ultimate Beneficial Owner and the Register of Partners or Shareholders to the Registrar and to protect these registers from damage, loss, or destruction. |
Article (11/1) |
Written Warning |
AED 15,000 and a warning to the legal person to rectify its status within (15) days from the date of the violation. |
AED 30,000 and suspension of the commercial license for a period of not less than (3) months. |
| 8 |
Failure of the legal person to provide any additional data requested by the Registrar. |
Article (11/2) |
Written Warning |
AED 5,000 and a warning to the legal person to rectify its status within (15) days from the date of the violation. |
AED 10,000 and suspension of the commercial license for a period of not less than one month. |
| 9 |
Failure of the legal person to provide the Registrar with the name of a natural person residing in the State who is authorized to disclose the data or information required by the Decree-Law and its Implementing Regulation. |
Article (11/4) |
Written Warning |
AED 1,000 and a warning to the legal person to rectify its status within (15) days from the date of the violation. |
AED 2,000 and suspension of the commercial license for a period of not less than one month. |
| 10 |
Issuance of bearer share warrants by the legal person. |
Article (11/5) |
Written Warning |
5,000 |
10,000 |
| 11 |
Failure of the legal person to disclose the issuance of shares or stocks in the names of persons or management members to the Registrar within 15 days from the date of issuance of the shares or stocks. |
Article (11/6) |
Written Warning |
AED 5,000 and a warning to the legal person to rectify its status within (15) days from the date of the violation. |
AED 10,000 and restricting the powers of the board members, directors, or owners proven to be responsible for the violation. |
| 12 |
Failure of the legal person to hand over the Register of the Ultimate Beneficial Owner and the Register of Partners or Shareholders to the liquidator within 30 days from the date of the liquidator's appointment. |
Article (11/7) |
Written Warning |
AED 5,000 and a warning to the legal person to rectify its status within (15) days from the date of the violation. |
AED 10,000 and suspension of the commercial license for a period of not less than one month. |
| 13 |
Failure of the legal person or the liquidator to maintain the registers and all data stipulated in this Resolution for a period of (5) years from the date of dissolution, liquidation, or striking-off. |
Article (11/8) |
Written Warning |
AED 20,000 |
AED 40,000 |