From July 8, Businesses that fail to disclose ‘Ultimate Beneficiary’ to be penalized in UAE
Dubai: With immediate effect from July 8, UAE businesses that fail to disclose information on the ‘ultimate beneficiary owner’ of that enterprise, will be liable for heavy penalties.
In the first phase, which began on July 1, establishments that violate Cabinet Resolution No. (58) of 2020 on the Regulation of Ultimate Beneficial Owner Procedures were issued with written warnings. The UAE has given an extensive roadmap to licensed businesses establishments in the country with the directive to comply with the regulations.
Following phase 1, the Ministry will levy administrative penalties on institutions that fail to adopt the essential measures to rectify their status in the second phase, the period which will start on July 8. Fines specified by Cabinet Resolution No.53 of 2021 will be imposed on non-compliant establishments in this phase.
More about the Penalties
Non-compliance to submission of obligatory legal requirements of 'ultimate beneficial owner' data by licensed and registered establishments in the country to the licensing authorities will lead to the imposition of administrative fines stipulated in Cabinet Resolution No. (53) of 2021.
First, a written warning will be issued and if the establishment continues to remain non-compliant, they will be penalized including but not limited to, a fine of Dh100, 000, as well as extra administrative fines such as the suspension of their business license for a year or restrictions on the powers of the board of directors.
As per the Gulf news reports, establishments can appeal against the punitive measures within the specified legal period of 30 days from the date of notification of the violation, following the decision.
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Min. Priyank Kharge to expresses concern over implementation of VB-G Ram G
Bengaluru: Rural Development and Panchayati Raj Minister Priyank Kharge has expressed concern over the uncertainty surrounding the implementation of the proposed VB-G Ram G scheme, stating that the MNREGA programme, which has been a lifeline for rural India for nearly two decades, appears to be facing an uncertain future.
Speaking to media, Kharge said that as March 31 draws to a close, there is no clarity on the rollout of the new scheme from April 1. He pointed out that the central government has not yet issued the necessary guidelines for implementing the scheme for rural workers and villages.
He criticised the Centre for its lack of preparedness, stating that there is no clarity on fund allocation, no final parameters for classifying gram panchayats, and key processes such as social audits have not been defined.
Kharge said the situation comes at a critical time, as summer marks a peak period for rural employment demand, when many people depend heavily on wage employment for their livelihood.
He added that reports have emerged of delays in approvals and families not receiving work despite demand.
He further alleged that the Centre’s move to shift from a statutory employment guarantee to a rule-based allocation system is already showing negative consequences.
Kharge also raised concerns over provisions such as a mandatory 60-day halt during agricultural seasons, which he said would further limit employment opportunities for rural workers.
The BJP-led central government had claimed that the new scheme would transform rural India, but in reality it is turning out to be detrimental to people’s livelihoods, he said.
“The crisis in rural India due to the stalling of MNREGA is beginning to unfold. Given the Centre’s past record in handling such situations, there is growing concern over the impact on rural livelihoods,” Kharge said.
