Commerce Minister ratifies actual beneficiary rules

Minister of Commerce Majid Al-Kassabi issues new rules defining the Ultimate Beneficial Owner

Minister of Commerce Majid Al-Kassabi issued a decision approving the actual beneficiary rules, replacing the previous regulations.

A ministerial statement defines the actual beneficiary as a natural person or individual who ultimately owns or exercises direct or indirect control over a company.

The ministry explained that the issued regulations aim to enhance corporate transparency in line with international and local standards pertaining to anti-money laundering, counter-terrorism financing, and proliferation financing, in addition to establishing a ministry database to record and maintain actual beneficiary information.

The regulations require companies to maintain a dedicated register for actual beneficiary data, including name, nationality, place and date of birth, identification details, passport for residents outside the Kingdom, address, and contact details.

The rules also oblige companies to take reasonable procedures and measures to ensure the correct identification of the actual beneficiary and impose penalties on companies that fail to comply, in accordance with the Companies Law.

The ministry clarified that there are no fees for registering actual beneficiary data or for annual confirmation of the information.