Dubai ruler enacts amendments to DIFC's Common Reporting Standard Law

The amended law enhances compliance requirements in the emirate's financial hub

The Dubai International Financial Centre. Earlier this week, the DIFC Courts signed an agreement with Dubai FDI to collaborate on exchanging information and research, as well as hosting joint conferenShow more

Dubai International Financial Centre (DIFC) has announced amendments to its Common Reporting Standard Law that will help elevate reporting standards in the emirate's onshore financial hub.

Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, has enacted amendments through the Common Reporting Standard Law Amendment Law No. 6 of 2020, state news agency Wam reported on Wednesday. The law reflects DIFC’s commitment to maintaining a transparent and robust legal and regulatory framework aligned with international best practice.

The DIFC Authority's board also issued new Common Reporting Standard Regulations, which came into force on July 30 this year.

The amended Common Reporting Standard Law and Regulations improve compliance requirements to ensure that reporting financial institutions in the DIFC meet the same standards as set out by the Organisation for Economic Cooperation and Development (OECD). Key changes include the introduction of offences and penalties for individuals providing false self-certifications and reporting financial institutions that fail to secure valid self-certifications, according to Wam.

"The amended Common Reporting Standard Law and Regulations provide clear direction for organisations operating within the Centre, elevating reporting and compliance standards,” Wam cited Essa Kazim, governor of DIFC, as saying. “Advancing our laws and regulations continues to help us reinforce DIFC’s reputation as a safe, resilient, transparent and business friendly jurisdiction."

The onshore financial centre is home to some of the world’s biggest financial institutions, banks, investment firms, wealth managers and insurers.

The number of firms operating out of DIFC rose 25 per cent in the first half of 2020. It attracted 310 new companies in the first six months of this year, bringing the total number of businesses based in the free zone to 2,584, the authority in charge of the financial free zone said last month.