GAA issues criteria for endowments true beneficiary, governance

Logo of General Authority for Awqaf (GAA)

The General Authority for Awqaf (GAA) issued the Ultimate Beneficial Owner (UBO) criteria for endowments. These were published in the official gazette and come into effect as of the publication date.

The UBO is defined as the natural person who owns or exercises actual and ultimate control over the endowment.

The criteria aim to enhance transparency about endowments, guide trustees on practices for identifying the UBO, ensure compliance with international and local requirements, prevent the misuse of Awqaf for money laundering or terrorism financing, and provide sufficient, accurate, and timely information on the UBO and beneficiaries in the Kingdom.

These criteria apply to endowments under GAA supervision, as well as to trustees of foreign endowments managed by a trustee residing within the Kingdom.

The GAA also published the draft endowment governance principles, approved by a board of directors’ resolution dated today, Dec. 28.

It outlines the core principles of endowment governance, including adherence to the founder’s conditions, ensuring waqf sustainability, safeguarding the rights of beneficiaries, promoting effective trusteeship practices, and strengthening the application of justice, integrity, responsibility, accountability, transparency, and disclosure standards.