Regulatory Compliance and Reporting in the UAE

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Regulatory Compliance and Reporting

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All companies, regardless of what sector or scale, must obey the laws and regulations as a part of the country’s operations. Regulatory compliance and reporting have to do with a set of guidelines that an organization is required to follow in accordance with the law. This is considered as one of the most critical responsibilities of a compliance officer – to include reports on corporate compliance.

The compliance report documents show a company's adherence to a specific business regulation. There are government sectors and agencies in the UAE that are in charge of inspecting and ensuring that a company's enforcement is in accordance with its corporate goals, risk management plans, and the country's laws and regulations.

Through the regulatory compliance and reporting in the UAE, it ensures that all companies are upholding all the country's laws and regulations - no one is excluded.

What are the laws and regulations that must be followed in the UAE?

Economic Substance Regulations (ESR)

The Economic Substance Regulations are enacted in accordance with the global norm established by the Organization for Economic Cooperation and Development ("OECD") Forum on Harmful Tax Practices, which allows companies engaging in geographically mobile business activities to have significant operations in a jurisdiction.

ESR notifications must be submitted within six months of the Licensee's financial year-end, according to the Economic Substance Regulations.

Within twelve months of the end of the financial year, all ESR Reports must be submitted.


Country-by-Country Reporting ("CbCR")

The guidelines for Country-by-Country Reporting (CbCR) are based on the Organization for Economic Cooperation and Development's (OECD) CbCR guidance. CbCR is designed for UAE-based businesses that are part of a multinational community that consists of two or more enterprises that are tax residents in various jurisdictions and have combined sales equal to or exceeding UAE Dirhams (“AED”) 3,150,000,000 in the previous financial year.

The CbC report should be sent within 12 months of the end of the MNE Group's reporting year.


Ultimate Beneficial Ownership (UBO)

The Ultimate Beneficial Owner's (UBO) goals include keeping the UAE's economic status in line with international standards. Its goal is to create an effective regulatory structure and procedure for beneficial owner data, as well as to regulate minimum obligations in disclosure of Beneficial Owners, Shareholders, Partners, and Nominee Board Members.


goAML system and Automatic Reporting System of Ministry of Economy

The UAE's Ministry of Economy (MoE) has launched an awareness and monitoring campaign to enable registered Designated Non-Financial Business and Professions (DNFBPs) to register with the Financial Intelligent Unit (goAML) system. Similarly, it encourages targeted organizations to register in the Committee on Goods Subject to Import and Export Control (Automatic Reporting System for Sanctions Lists) system and to take steps in accordance with both the provisions of Federal Law No. 20 of 2018 on the fight against money laundering crimes and the financing of terrorism and criminal organizations, as well as relevant laws and decisions.

The grace period for organizations to enforce these measures has been extended until March 31, 2021. Non-compliance with the above conditions would result in the suspension of your business license, as directed by the Ministry of Economy.


What are the most challenging components of the regulatory compliance and reporting in the UAE?

  1. Complications in Compliance

    In the United Arab Emirates, determining whether or not a company complies with the country's laws and regulations is extremely difficult. There have been occasions when management assumed that the organization had already complied with a specific rule, only to find out later that they had incurred a penalty or punishment.

  2. Lack of Enough Time and Resources for Training

    Every day, new laws and regulations are enacted that organizations in the UAE must obey. As a result, organizations must dedicate a considerable amount of time and resources to keeping their bodies up to date, through at least a training, on the current laws and regulations in the UAE, which tends to be updated on a regular basis.

  3. Danger in Company’s Reputation

    The company's name and credibility would be jeopardized if it is unable to comply with even a single UAE law or regulation. This is unquestionably something that no business owner wants to happen.

How may we be of assistance?

With AMCA, we'll make it easy for you and your business to comply with the UAE's various laws and regulations. With the support of our committed and competent staff and team, we will ensure that your organization never fails to meet any government or authority-mandated submission requirements. Our experts are well-trained and specialized in delivering regulatory advice and assistance. Our experts are well-trained and experienced in advising and assisting with regulatory relations, meeting regulatory requirements and expectations, and obtaining regulatory approval for your company.