DIFC Issues Amendments to the Common Reporting Standard Law and Regulations

Dubai, UAE, 18^th August 2020: Dubai International Financial Centre (DIFC), the leading global financial centre in the Middle East, Africa and South Asia (MEASA) region, announced that His Highness Sheikh Mohammed bin Rashid Al Maktoum, in his capacity as the Ruler of Dubai, has enacted the Common Reporting Standard Law Amendment Law No. 6 of 2020. The Amendment Law makes amendments to the Common Reporting Standard Law, DIFC Law No. 2 of 2018 and came into force on 16 August 2020. The Board of Directors of the DIFC Authority also issued new Common Reporting Standard Regulations which came into effect on 30 July 2020.

The amendments to the Common Reporting Standard Law and Regulations ensure that the Common Reporting Standard (“Standard”) issued by the Organisation for Economic Cooperation & Development (“OECD”), is properly adopted in the DIFC and is being applied consistently across the UAE.

Key changes include:

• introducing offences and penalties for providing false self-certifications;

• introducing offences and penalties for financial institutions failing to obtain valid self-certifications;

• formally adopting the explanatory material issued and published by the OECD for the purpose of assisting with the interpretation of the Common Reporting Standards; and

• other miscellaneous enhancements.