UAE International Trade / Sanctions LawCabinet Resolution No. (63) of 2022 Regarding Implementing the Provisions of Federal Decree No. (9) of 2016 Ratifying an Agreement between the Government of the United Arab Emirates and the Government of the United States of America for Improving the Inte

Article (1) of the Agreement. Non-participating Financial Institution : Shall have the meaning specified in Clause (1/I) of

Article (1) of the Agreement. Reporting United Arab Emirates Financial Institution : Shall have the meaning specified in Clause (1/N) of

Article (1) Definitions 1. In applying the provisions of this Resolution, the following words and phrases shall have the meanings assigned thereto, unless the context otherwise requires: The State : United Arab Emirates. The Competent Authority : Minister of Finance. The Competent Authority in the United States : The Secretary of the Treasury or his delegate. Regulatory Authority : The Authority specified in Article (3) of this Resolution. FTA : The Federal Tax Authority. Financial Institution : Shall have the meaning specified in Clause (1/G) of

Article (1) of the Agreement. Financial Free Zone : A financial free zone established under Federal Law No. (8) of 2004. Financial Free Zone Authority : The authority authorized in the concerned Financial Free Zone to exercise the tasks of the Executive Authority in relation to a Financial Institution registered in the relevant Financial Free Zone for the purposes of implementing the provisions of this Resolution and the Agreement.

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Cabinet Resolution of 2022 Regarding Implementing the Provisions of Federal Decree of 2016 Ratifying an Agreement between the Government of the United Arab Emirates and the Government of the United States of America for Improving the International…

Article (1) of the Agreement. Account Holder : Shall have the meaning specified in Clause (1/Z) of

Article (1) of the Agreement. Financial Account : Shall have the meaning specified in Clause (1/Q) of

Article (1) of the Agreement. New Entity Account : Shall have the meaning specified in Clause (5) of Annex I of the Agreement. New Individual Account Shall have the meaning specified in Clause (3) of Annex I of the Agreement. U.S. Reportable Account : Shall have the meaning specified in Clause (1/Y) of

Article (1) of the Agreement. Annual Report : The report submitted as per Clause (3/A) of Article (5) of this Resolution. Nil Report: : The report submitted as per Clause (3/B) of Article (5) of this Resolution.

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Cabinet Resolution of 2022 Regarding Implementing the Provisions of Federal Decree of 2016 Ratifying an Agreement between the Government of the United Arab Emirates and the Government of the United States of America for Improving the International Tax Compliance and the Implementation of the Foreign Account Tax Compliance Act (FATCA) 4 Self-Certification Form : The form to be collected and validated in accordance with Clause (3) of Article (5) of this Resolution to de…

Article (2) Resolution Objectives This Resolution aims at applying the provisions of the Agreement in the State

Article (3) Executive Authorities 1. Each of the following bodies shall be designated as a Regulatory Authority for the purposes of implementing the provisions of this Resolution and the Agreement: a. The UAE Central Bank in relation to the Financial Institution that shall be subject to its supervision in accordance with the provisions of the applicable Laws and Regulations issued by the Central Bank. b. Securities and Commodities Authority (SCA) in relation to the Financial Institution that shall be subject to its supervision in accordance with the provisions of the applicable Laws and Regulations issued by SCA. c. Financial Free Zone Authority. d. The Ministry of Finance in relation to any…

Article (3) of this Resolution.

Article (4) Federal Tax Authority Tasks 1. With regard to the implementation of the tasks of the Ministry of Finance as a Regulatory Authority under Clause (1/D) of Article (3), the FTA is authorised to carry out the tasks specified in Clauses (2/F), (2/H) and (2/I) of Article (3) of this Resolution on behalf of the Ministry of Finance. 2. In order to carry out the tasks entrusted thereto under Clause (1) of this Article, the FTA shall: a. Provide the Competent Authority with the information, records, and documents that it may request in accordance with Clause (2/D) of Article (3) of this Resolution. b. Carry out the tasks specified in Clauses (2/B) and (2/C) of Article (3) of this Resolutio…

Article (5) Duties of Financial Institutions 1. Due Diligence Each reporting UAE financial institution is required to apply the due diligence procedures stated in Annex I of the Agreement to identify the U.S. Reportable Accounts and the accounts held by Non-participating Financial Institutions. 2. Self-Certification Form Each Reporting UAE Financial Institution is required to collect and validate the Self- Certification Form for each New Individual Account and each New Entity Account.

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Cabinet Resolution of 2022 Regarding Implementing the Provisions of Federal Decree of 2016 Ratifying an Agreement between the Government of the United Arab Emirates and the Government of the Uni…

Article (6) Supervision and Investigation Authorities In order to exercise any of the tasks and powers stipulated in this Resolution, the Competent Regulatory Authority and the FTA may: 1. Request any information or documents from the Financial Institution for the purpose of ensuring compliance with any provision of this Resolution, the Agreement and any resolutions issued by the Competent Authority. 2. Request any information from any Account Holder and any Controlling Person who has an account with the Financial Institution, including account records and all other records relating to information or statements made to that Financial Institution. 3. Request assistance from the Financial Inst…

Article (7) Administrative Violations and Sanctions 1. Failure to perform due diligence A fine of forty thousand (40,000) AED shall be imposed on the Reporting UAE Financial Institution for each calendar year, if it does not meet the due diligence procedures stipulated in Clause (1) of Article (5) of this Resolution and in Annex I of the Agreement. 2. Failure to collect or validate the Self-Certification Form A fine of one thousand (1,000) shall be imposed for each event of opening a New Individual Account or a New Entity Account, without collecting a correct and valid Self-Certification Form, or without validating the Self-Certification Form. 3. Failure to submit the annual report or Nil Re…

Article (8) Imposing Administrative Sanctions 1. If the Competent Regulatory Authority or FTA decides that any of the administrative violations stipulated in Article (7) of this Resolution have been committed and decide to impose on the violator the prescribed financial fine and any other administrative sanction, as the case may be, it must notify the violator in writing of the following: a. That the violator has committed an administrative violation. b. The reasons for imposing the administrative violation. c. The date on which the administrative violation is committed. d. Amount of the administrative fine imposed. e. The date on which the fine is due, provided that it is not less than thir…

Article (8) of this Resolution. 4. The Competent Regulatory Authority or FTA shall request the Grievant to submit any additional documents or information that it deems necessary for deciding on the grievance, and for the same purpose, it may set a date for the Grievant to appear before it to hear his statements and confirm his pleas. 5. The Competent Regulatory Authority or the FTA shall consider the grievance and issue its decision to accept the grievance and take a decision in accordance with Clause (6) of this Article, or to reject it or not accept it and notify the Grievant thereof. Said decision must be substantiated and in writing. 6. If the Competent Regulatory Authority or the FTA ac…

Article (9) Grievance and Appeal 1. A person who has been subject to a fine or an administrative sanction may file a grievance before the Regulatory Authority that issued said fine or before the FTA within twenty (20) business days as of receiving the notification referred to in Clause (1) of Article (8) of this Resolution. 2. The grievance shall be written and signed by the person against whom the resolution to impose the administrative fine has been issued, or by whomever is authorised thereby to

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Cabinet Resolution of 2022 Regarding Implementing the Provisions of Federal Decree of 2016 Ratifying an Agreement between the Government of the United Arab Emirates and the Govern…

Article (9) of this Resolution. 2. If the person subject to the financial fine files a grievance under Article (9) of this decision, the financial fine must be paid within fifteen (15) business days as of the date of notifying the Grievant in writing of the rejection, non-acceptance, or withdrawal of the grievance. 3. If the violator does not initiate payment of the financial fine within the period specified

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Cabinet Resolution of 2022 Regarding Implementing the Provisions of Federal Decree of 2016 Ratifying an Agreement between the Government of the United Arab Emirates and the Government of the United States of America for Improving the International Tax Compliance and the…

Article (9) of this Resolution shall be considered as writ of execution. The Competent Regulatory Authority or the FTA may submit the writ of execution to the execution judge in the competent court to proceed with its forcible execution.

Article (10) Paying and Implementing Administrative Sanctions 1. Subject to Clause (2) of this Article, the financial fine prescribed under this Resolution must be paid within a period not exceeding the due date of the fine in accordance with the notification issued under Clause (1) of Article (8) of this Resolution or Clause (6) of

Article (11) Information Exchange 1. The Competent Authority shall exchange information annually with the Competent Authority in the United States in relation to: a. Each U.S. Reportable Account under Section 2 of the Agreement. b. any other information that may be required under the Agreement. c. According to the Model and Mechanism and for the period specified in the Agreement and pursuant to any other international agreement or similar international arrangement to which the State is a party. 2. For the purposes of assisting the State in complying with its obligations under the Agreement, the Competent Authority shall: a. Issue the necessary forms to implement the provisions of this Resolu…

Article (12) Cooperation of Other Government Agencies All ministries and other government authorities, federal or local, are required to: a. Cooperate with the Competent Authority, Regulatory Authorities, and the FTA to do what is necessary to implement the provisions of this Resolution, the Agreement or any resolutions issued by the Competent Authority. b. Submit to the Competent Authority, Regulatory Authorities, and the FTA any data, information, or documents in its possession or under its control; and they may also be required by any of the aforementioned authorities for the purposes of carrying out its tasks under this Resolution, the Agreement or any resolutions issued by the Competent…

Article (13) Executive Resolutions The Competent Authority shall issue the resolutions necessary to implement this Resolution.

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Cabinet Resolution of 2022 Regarding Implementing the Provisions of Federal Decree of 2016 Ratifying an Agreement between the Government of the United Arab Emirates and the Government of the United States of America for Improving the International Tax Compliance and the Implementation of the Foreign Account Tax Compliance Act (FATCA) 16

Article (14) Resolution Publication and Entry into Force This Resolution shall be published in the Official Gazette and shall enter into force as of the day following the date of its publication. Mohammed Bin Rashid Al Maktoum Prime Minister Issued by Us: On: 13 Dhul Hijja 1443 H Corresponding to: 12 July 2022

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