Important ADGM Regulatory Updates

ADGM has recently introduced important regulatory updates aimed at strengthening transparency, beneficial ownership controls and AML/CFT oversight, as well as enhancing the information required when filing annual accounts.

 What has changed?

1. Greater transparency of nominee arrangements

   • ADGM's public register will indicate whether a shareholder or director is acting in a nominee capacity.

2. Enhanced beneficial ownership requirements

   • The Registrar can request beneficial ownership information relating to trusts connected to ADGM. This is particularly relevant for trusts, foundations, family offices, succession planning and holding structures.

3. Restrictions on certain cash transactions

   • ​​​​​​​Certain designated businesses and professions, including legal, accounting, company service and real estate businesses, will be subject to restrictions on cash payments above prescribed thresholds.

4. New requirements for ADGM branches

   • ​​​​​​​Branches of foreign companies registered in ADGM will be required to maintain beneficial ownership information relating to their foreign parent entity.

5. Enhanced annual accounts filing requirements

   • ADGM entities filing annual accounts will now be required to provide additional information, including details relating to the financial period, type of accounts, audit information, revenue, employee numbers and currency. 

Why does this matter?

These updates reflect ADGM's continued move towards greater transparency and regulatory oversight. ADGM entities are expected to maintain complete and up-to-date ownership, corporate and financial records and be ready to provide this information when required.

While annual accounts will continue to be accepted upon submission, entities remain responsible for ensuring compliance with applicable ADGM legislation.

What should you do now?

If you have an ADGM company, branch, trust, foundation, nominee arrangement, family office or holding structure, we recommend reviewing your current records and arrangements now rather than waiting for a regulatory request.

How we can help

Elnaggar & Partners can conduct a focused ADGM Compliance Review to assess whether your current structure, records and filings remain aligned with the new requirements.

Following our review, we will identify any gaps or updates that may be required and advise you on the next steps.