This new regulation aims to prevent fraud, enhance transparency, and provide public access to important information.
Key changes include:
✅ Incorporation: Companies will be required to disclose details of their UBO to the Ministry of Commerce during the formation process.
✅ Annual Filings: Companies must disclose or confirm their UBOs in their annual filings with the Ministry of Commerce, within 30 days before the anniversary of the company’s formation.
✅ Maintenance & Updates: All existing companies must maintain a UBO register and notify the Ministry of Commerce of any changes to the identity of an ultimate beneficial owner within 15 days of the change.
Non-compliance will result in penalties, including fines of up to SAR 500,000 ($133,000), making it crucial for businesses to stay informed.