The UAE has implemented strict global standards for financial governance: the Economic Substance Regulations (ESR) and Anti-Money Laundering (AML)/Counter-Terrorism Financing (CFT) laws. Non-compliance is met with significant fines (up to AED 400,000 for ESR and severe fixed penalties for AML failures) and regulatory blacklisting. FrankDigit Accounting Services offers specialized compliance audit support, ensuring your business meets the rigorous standards set by the Ministry of Finance (MoF) and the Financial Intelligence Unit (FIU).
Our experts, led by Bilal Mogul, provide proactive audits of your controls and documentation. Upholding Confidentiality, Transparency, and Integrity (CTI), we ensure your business, particularly if you are a Designated Non-Financial Business or Profession (DNFBP), is fully compliant and prepared to demonstrate genuine economic substance on request.
ESR requires companies performing specific Relevant Activities (e.g., Holding Company, Shipping, Headquarter Business) in the UAE to prove they have a genuine economic presence, not just a license. This involves demonstrating adequate employees, physical assets, and expenditure in the UAE.
AML/CFT targets illegal financial activities. It mandates that regulated entities, including DNFBPs (like accountants, real estate agents, dealers in precious metals), implement a Risk-Based Approach, conduct Customer Due Diligence (CDD), and report suspicious transactions to the FIU via the goAML portal.
We provide the specialized reporting and internal audit services necessary to satisfy these distinct regulatory bodies.
| Delieverable | How FrankDigit Delivers |
|---|---|
|
ESR Compliance Audit |
Conducting an internal review to verify that your CIGAs (Core Income Generating Activities), expenditure, and personnel meet the annual Economic Substance Test. |
|
AML/CFT Risk Assessment |
Performing a mandatory annual Business Risk Assessment (BRA) to identify and document your company’s exposure to money laundering and terrorist financing risks. |
|
ESR Notification & Report Filing |
Preparing and submitting the annual ESR Notification (within 6 months) and the detailed ESR Report (within 12 months of the fiscal year-end) to the MoF portal. |
|
AML Policy Implementation |
Developing and implementing mandatory AML/CFT internal policies, controls, and appointing the required AML Compliance Officer (MLRO). |
|
Regulatory Audit Defense |
Compiling evidence and providing direct support during an ESR audit by the FTA or an AML inspection by the Ministry of Economy. |
Compliance in these areas is crucial for international reputation and avoiding debilitating sanctions.
The key to ESR compliance is proving the company is Directed and Managed in the UAE and performs its Core Income Generating Activities (CIGAs) locally. We assist in preparing documentary evidence, such as Board Meeting Minutes physically held in the UAE, records of qualified employees’ Emirates IDs and contracts, and verifiable operating expense proof, ensuring you meet the substance requirements and avoid the escalating AED 400,000 penalty for repeated failure.
For businesses categorized as DNFBPs, compliance is continuous. We implement stringent CDD and KYC (Know Your Customer) procedures tailored to your risk profile. Crucially, we ensure the proper framework is in place to detect and report Suspicious Transaction Reports (STRs) to the FIU via the goAML portal. Failure to implement the necessary controls can result in massive financial fines and reputational damage.
We implement a proactive, year-round system that ensures continuous compliance and audit readiness.
- Decode (Scope & Risk): We determine if your activities fall under ESR and/or AML (DNFBP) scope and conduct the initial Business Risk Assessment (BRA) to define your regulatory priorities.
- Simplify (Implementation & Policy): We develop the mandatory AML/CFT policies and the operational structure required to meet the ESR CIGA test. We assist with goAML registration and MLRO designation.
- Automate (Filing & Audit): We file the annual ESR Notification and Report, provide AML/CFT training to your staff, and prepare all documentation to successfully defend your compliance position during regulatory audits or inspections.
Is your governance strong enough to withstand regulatory scrutiny? Secure your license and reputation with expert compliance.
📞 Contact FrankDigit Accounting Services for immediate ESR and AML Compliance Audit Support.