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AML Compliance Challenges and Mitigation Strategies for Crypto Companies in the UAE

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  Introduction On January 23, 2025, soon after taking office, U.S. President Donald J. Trump signed an Executive Order to create the Presidential Working Group on Digital Asset Markets. Chaired by David Sacks, a noted advocate of cryptocurrency and artificial intelligence, this group’s mission is to enhance regulatory oversight of digital assets and evaluate the possibility of establishing a national digital asset reserve. This initiative fits into the broader global movement to incorporate digital currencies into mainstream finance. Meanwhile, the United Arab Emirates (UAE) is already leading the way in crypto adoption, driven by progressive policies that encourage innovation. As reported by Triple-A’s 2024 Global Cryptocurrency Ownership survey, worldwide crypto ownership hit 6.8%, accounting for over 560 million users. The UAE ranks first in the Middle East and is among the top countries globally, securing the third spot in the Henley Crypto Adoption Index 2024, praised for it...
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UAE Free Zone Companies: Who Can Take Advantage of the 0% Corporate Tax?

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  Introduction Special Economic Zones (SEZs) have long been catalysts for economic development. A prime example is Shenzhen in China, which transformed from a small fishing village into a major economic hub after its SEZ designation in 1980. Between 1979 and 2019, its GDP per capita soared, mirroring China’s broader economic growth. Today, more than 140 countries operate over 7,000 SEZs—demonstrating their impact on global trade and investment strategies. The United Arab Emirates (UAE) stands out globally for its thriving free zone model. As of 2023, six of the world’s top ten free zones were in the UAE, with the Dubai Multi Commodities Centre (DMCC) earning top honors for the ninth year in a row. These zones have attracted significant international investment, solidifying the UAE’s position as a top-tier destination for global businesses. To reinforce this reputation, the UAE introduced a 0% corporate tax scheme for eligible companies operating in free zones. This article outli...
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UAE Free Zone Companies: Who Can Enjoy the Zero Corporate Tax Regime?

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  Introduction Special Economic Zones (SEZs) play a pivotal role in a nation’s economic development. Take Shenzhen, for example. Once a small village in China with a population of just 30,000, it transformed into an economic powerhouse after being designated an SEZ in 1980. By 2019, its GDP per capita had skyrocketed by 33,479%! During the same period, China’s GDP increased more than 54 times. This transformation demonstrates the remarkable effect that SEZs can have on economic growth. The UAE has been a trailblazer in establishing free zones, a type of SEZ, offering businesses numerous advantages. In fact, six of the world’s top ten free zones were located in the UAE in 2023. The Dubai Multi Commodities Centre (DMCC) even earned the title of “Global Free Zone of the Year” for nine consecutive years. These free zones have been key in positioning the UAE as a global investment hub. To maintain their appeal, the UAE introduced a groundbreaking initiative: a 0% corporate tax rate for ...
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Defending Finances: Unveiling Money Laundering Dynamics and UAE’s Vigilant Measures

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  Introduction In today’s globally interconnected financial landscape, the battle against money laundering has become a critical concern. This illicit activity allows criminals to mask the origins of their funds, posing a significant threat to the security and integrity of financial systems worldwide. Financial Institutions (FIs) and Designated Non-Financial Businesses and Professions (DNFBPs) have assumed a crucial responsibility in verifying both the origin of funds (SOF) and the origin of wealth (SOW) to effectively combat this menace. Understanding a customer’s SOF and SOW goes beyond a mere procedural requirement; it is a pivotal step toward fostering transparency in transactions. This detailed insight enables regulated entities to construct an accurate customer financial profile, forming the basis for vigilant transaction oversight. Any deviation from the established financial capability triggers an immediate notification, aiding in the assessment of potential connections to ...
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Location: Dubai - United Arab Emirates
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Navigating Excise Tax in Dubai | Unraveling Federal Excise Tax | AKW

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  Introduction Excise tax, a crucial component of Dubai’s financial landscape, holds significant importance in regulating product consumption and contributing to public services. In this article, we unravel the intricacies of  excise tax in Dubai , exploring its definition, regulations, and the role of AKW in assisting businesses. Understanding Excise Tax in Dubai Definition and Purpose Excise tax, a form of indirect taxation, is levied on specific goods considered harmful to society. In Dubai, it serves the dual purpose of regulating consumption and generating revenue for public services. Goods Subject to Excise Tax Dubai’s excise tax primarily targets products such as tobacco, energy drinks, and carbonated beverages. Understanding which goods are subject to tax is essential for businesses. Tax Rates and Exemptions Different goods carry different excise tax rates, and some items may be exempt. Familiarity with these rates and exemptions is crucial for businesses to ensure com...
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Location: Dubai - United Arab Emirates
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Cabinet Decision No 91 of 2023: Revolutionizing Electronic Device Transactions with RCM

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  In a bold move that is set to reshape the landscape of electronic device transactions, Cabinet Decision №91 of 2023 has ushered in a new era. This decision, officially announced in Gazette Issue №758 dated August 30, 2023, introduces a specialized  Reverse Charge Mechanism (RCM)  tailored exclusively for local electronic device transactions. The  RCM on Electronic Devices , as outlined in this pivotal decision, encompasses a wide range of gadgets, including mobile phones, smartphones, computers, tablets, and their corresponding spare parts. Understanding the Reverse Charge Mechanism (RCM) on Electronic Devices Defining Electronic Devices The meticulous crafting of Cabinet Decision №91 of 2023 leaves no room for ambiguity in defining electronic devices. Encompassing mobile phones, smartphones, computers, tablets, and related spare parts, the decision’s definition is comprehensive, ensuring that all stakeholders have a clear understanding of the scope of the RCM on E...
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Demystifying the Economic Substance Regulation: A Guide for Businesses

Introduction The Economic Substance Regulation (ESR) has been a hot topic in the business world, particularly in jurisdictions known for their low-tax environments. Introduced to combat aggressive tax planning and ensure businesses have genuine economic activity in the countries where they operate, the ESR has raised many questions and concerns among businesses. This blog aims to demystify the ESR and provide a comprehensive guide for businesses navigating this complex and evolving regulation. Whether you are a multinational corporation or a small business, understanding the ESR is crucial for compliance and avoiding potential penalties.  Understanding the Economic Substance Regulation In order to fully grasp the implications of the Economic Substance Regulation (ESR) , it is important to first understand its key components and requirements. The ESR was introduced by many jurisdictions to address concerns regarding base erosion and profit shifting (BEPS), which involve multinationa...
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Location: United Arab Emirates
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