Global law firm DLA Piper, DIFC and the US-UAE Business Council have together explored the scope and implications of the new law for businesses with operations in the UAE.
FATCA requires financial institutions to use enhanced due diligence procedures to identify US persons who have invested in either non-US financial accounts or non-US entities. The intent behind FATCA is to keep US persons from hiding income and assets overseas.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
DLA Piper, DIFC and the US-UAE Business Council outlined the practical steps that businesses need to take immediately, to ensure that they are compliant within the timeframe, less than six months away. Experts also shed light on the potential consequences for businesses that fail to comply. Other topics they discussed included how FATCA applies to UAE financial institutions, why automation is necessary and finally, what the UAE government’s response to FATCA has been so far.
"FATCA will have a huge impact on businesses in the UAE, whether they are part US owned or simply do business in the US, FATCA rules must be followed," commented Peter Somekh, Dubai office managing partner at DLA Piper Middle East. "Severe consequences will be faced by those who fail to comply in time and we are working closely with clients across the region to iron out any potential hurdles, well ahead of the deadline."
"Conducting international business responsibly by complying with appropriate laws and regulations is vital to maintaining the critically important economic and trade relationship between the US and the UAE.", added Danny Sebright, president of the US-UAE Business Council. "American and Emirati companies operating in the US as well as their employees with financial assets abroad must be well informed about new regulations like FATCA and the impact these regulations have on how they report their earnings."
Roberta Calarese, chief legal officer at DIFC Authority, said, "The UAE has always been mindful of its commitment to the financial community, locally and internationally, with regards to both security and transparency. Implementation of FATCA will help to level the playing field to make the DIFC and the UAE a more competitive and open market for financial services."
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
