ADGM tightens beneficial ownership and cash transaction rules for companies

Abu Dhabi Global Market (ADGM) has introduced changes to its commercial legislation effective immediately, with new requirements affecting nominee arrangements, beneficial ownership information, foreign company branches and cash transactions. Nominee shareholders and directors must now be flagged as such in the public register, though the beneficial ownership register remains non-public. Foreign company branches previously exempted from beneficial ownership rules must now maintain and provide beneficial ownership information for their overseas parent. ADGM's Registration Authority has been given clearer powers to obtain beneficial ownership information relating to trusts. Designated non-financial businesses and professions—including legal, accounting, company service and real estate providers—face new commercial licensing restrictions on cash transactions above prescribed thresholds. Entities within the Beneficial Ownership and Control Regulations must take reasonable steps to identify beneficial owners, maintain accurate records, and report changes to the Registrar within 15 days. The amendments do not require most ADGM businesses to restructure, but they increase the importance of accurate ownership records and current compliance procedures.