The Abu Dhabi Global Market (ADGM), the global financial centre in Abu Dhabi, said its board of directors  approved the codification of existing corporate beneficial ownership and control (BOC) regulations earlier this month.  

The enactment of the new BOC regulations took place yesterday (April 17), said a statement from the organisation.

The new regulations will have the effect of safeguarding and promoting ADGM’s reputation as a stable and responsible financial centre, and will reinforce its commitment to adhere to the highest global standards of financial crime prevention.

A key component in detecting and averting financial crime is the accessibility of information relating to corporate BOC, it said.

ADGM said it places great significance in implementing regulations that prevent and combat financial misconduct.
The enactment of the new codified corporate BOC regulations enhances transparency and accountability both at a national level and in conjunction with other regulatory bodies globally, said the statement.

ADGM’s aim in codifying existing BOC regulations is to stay in line with international best practices on anti-fraud and financial crime prevention. The regulations will entrench the centre’s compliance with Financial Action Task Force (FATF) recommendations 24 and 25, which deal with transparency and identifying the beneficial ownership of legal persons and legal arrangements.  

In addition, the new BOC regulations meet requirements set out in the 4th Anti Money Laundering (AML) directive which focuses on maintaining accurate and current information on the BOC of corporate entities.  

Dhaher Bin Dhaher Al Mheiri, CEO of the Registration Authority, said: “The introduction of the new beneficial ownership regime by enactment of ADGM Beneficial Ownership and Control Regulations marks the new era of openness and transparency.”

“This is the first and only standalone legislation to date. This legislation codifies provisions for maintaining accurate and up to date information on beneficial ownership and control of legal entities,” he said.

“The new regulations is introduced in order to provide clear evidence of how the authority collects and maintains information on registrable beneficial owners, and clear procedures on access to information on beneficial ownership of legal entities registered and incorporated in ADGM,” he added.

Mohamed Jawad Shalo, head of financial crime prevention unit - Financial Services Regulatory Authority (FSRA), added: “The codification of the BOC regulations is the first of its kind in the UAE and the region.”

“This continues to demonstrate ADGM’s commitment to be an international financial centre that recognises international standards and best practices. It will assist ADGM in meeting international tax reporting requirements and support its profile for the upcoming OECD assessment and FATF mutual evaluation,” he added.-TradeArabia News Service