Regulatory Compliance and Reporting

The United Arab Emirates applies Economic Substance Regulations (ESR) to local businesses operating in the country, including firms in the free zones and those involved in any of the specified ‘relevant activities’: Banking Business, Investment Fund Management, Insurance, Lease-Finance, Headquarter, Shipping, Holding Company, Intellectual Property, or Distribution and Service Centre.

As these companies must provide the regulatory authorities with economic substance notifications as a prerequisite for submitting an economic substance report, including preliminary information about the activities, Deltoid provides top-notch ESR reporting services in UAE.

Deltoid’s ESR reporting services are available for all the companies and establishments involved in ‘relevant activities’ in the UAE that must submit annual ES notifications and reports to the specific regulatory authority.

Deltoid ESG reporting services typically include the following types of information:

Environmental performance: Deltoid provides information on a company’s energy consumption, greenhouse gas emissions, water usage, waste management, and other environmental impacts.

Social performance: This service of Deltoid includes information on a company’s labor practices, human rights, diversity and inclusion, community engagement, and other social impacts.

Governance performance: In this report, Deltoid provides information on a company’s board composition, executive compensation, risk management, and other governance practices.

Deltoid’s ESG reporting can take many forms, including sustainability reports, integrated reports, annual reports, and proxy statements. Deltoid follows guidelines from ESG reporting frameworks such as the Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB), and Task Force on Climate-related Financial Disclosures (TCFD) on what information to report and how to report it.

Over the past few years, the UAE government has taken a number of successful steps to fight money laundering and the financing of terrorist activities. Cabinet Decision No. 58 of 2020 on the Regulation of the Processes of the Actual Beneficiary was one such decision. As a result of this judgment, all businesses with mainland and free zone registrations must maintain a registry of the Ultimate Beneficial Owner (UBO) and provide the same information to the appropriate authorities.

Deltoid’s experienced and qualified professionals provide relevant regulatory compliance support and consultancy for UBO to businesses in UAE.

By increasing disclosure and record-keeping obligations for businesses, this regulation and comparable other choices aim to promote economic transparency. Regulatory authorities of UBO force businesses to carefully consider their ownership arrangements to comply with anti-money laundering and countering the funding of terrorism regulations.

CbCR is designed for multinational groups with UAE headquarters that include two or more businesses that are tax residents of various jurisdictions and have consolidated revenues equal to or exceeding a certain threshold.

Deltoid provides top-notch regulatory compliance assistance to businesses in the UAE looking for CbCR consultancy.

CbCR Notification

The UAE tax resident must send the notification verifying that the notifying company is a resident of the UAE, the Ultimate Parent Entity of the MNE Group and that the CbCR criteria are applicable.

CbC Report

Companies having headquarters in the UAE that fit the conditions mentioned above shall abide by UAE law regarding CbC reporting.

The CbC Report contains quantitative and qualitative data on the MNE Group, such as financial data (revenues, profits, number of employees, description of the company, etc.)

United Nations Office on Drugs and Crime (UNODC) created the goAML system to fight money laundering and terrorism financing. It is regarded as an integrated system utilized by the Financial Intelligence Unit (FIU) to quickly and effectively receive, analyze, and distribute suspicious transaction reports (STRs). goAML is currently in use by many financial intelligence units throughout the world, and the United Arab Emirates is the first Gulf nation to implement this cutting-edge system.

With its truly skilled and experienced professionals, Deltoid can help in the regulatory compliance of goAML.

As per domestic anti-money laundering laws and regulations requirements, the Financial Intelligence Units receive, process, and analyze information submitted by financial firms and Designated Non-Financial Businesses and Professions (DNFBPs). Such data and reports are kept in the goAML platform and can serve as the foundation for investigations into major offenses like money laundering and terrorism financing.

Each Finance Intelligence Unit can benefit from the goAML’s assistance with data collecting, management, analytical, document management, workflow, and statistical needs.

The UAE Cabinet Resolution (58) 2020 requires registered companies (Subsidiaries and Joint Ventures) and formed Branches (for a non-DMCC Business) to submit pertinent information regarding officers holding managerial positions in the Parent Company, such as its Directors. DMCC creates a new service call for the declaration of Parent Company officers in order to comply with this requirement.

Deltoid provides remarkable regulatory compliance support through its proactive team of qualified professionals.

Parent Company Officers

The DMCC Entity is managed by all officers holding higher management positions within the Parent Business. Only officers with authority to make decisions for the DMCC Entity must be declared.

Business Rules and Validations

The Declaration process applies to and is required for established Branches and Registered Businesses. Some sanctions would prevent the SR from being submitted when the DMCC Entity’s registration status is active. The number of natural individuals who can declare themselves as Parent Company Officers is not restricted. This is because it depends on the Parent Company’s organizational structure. 

The only Officers who must reveal themselves are those with control over the DMCC Entity. Information about registered Parent Company officers will be kept in the DMCC Officer Registry. But, it must not be accessible to the general public, and DMCC must not release any official extracts that do so.

Classification is a system implemented by the Municipality for contracting companies and engineering consultants in the country to register their businesses, ensuring that they have the required experience and resources. Deltoid proactive consultants provide classification certification facilitation to businesses seeking professional support in UAE.

If a contracting or engineering consulting company wants to submit a bid for a government or semi-government project, classification is a requirement. There are two alternative classification systems—one designed solely for contractors, the other for engineering consultants—each with a number of potential categories. Deltoid’s professional consultants have hands-on experience with both systems. At Deltoid, we help Contracting Companies and Engineering Consultants, based on a certain set of requirements, assess and determine which category is acceptable for each of their license operations to be categorized in. Here are the categories of classification for both contractors and engineering consultants.

Classification for Contractors

1a. Special Category

1b. First Category

1c. Second Category

1d. Third Category

1e. Fourth Category

1f. Fifth Category

1g. Sixth Category

Classification for Engineering Consultants

2a. Special Category

2b. First Category

2c. Second Category

To know about the requirements of each category, contact Deltoid now. We provide professional services to get your Company classified in the correct category. With our comprehensive experience in this domain, we make your Company’s classification journey hassle-free and time-saving.