The UAE’s regulatory framework for Ultimate Beneficial Owner (UBO) is designed to increase transparency in business ownership and curb illegal activities like money laundering and tax evasion. As part of compliance with UAE laws, companies must disclose their ultimate beneficial owners. Failure to comply with UBO regulations can result in significant fines and legal consequences.
UBO refers to the individual or individuals who ultimately own or control a company, directly or indirectly. In the UAE, businesses are required to submit detailed UBO information to authorities, including identifying individuals who hold at least 25% ownership or have substantial control over the company. The UBO regulation ensures transparency and is a critical element in combatting financial crimes such as money laundering, tax evasion, and fraud.