Compliance in Jafza: towards a secure business environment

The Jebel Ali Free Zone is one of the largest free zones in the world, with a total of 9,000 companies in a variety fields. In its relentless pursuit to provide business with the best services in line with local and international laws, rules, and best practices, Jafza has established a clear and defined framework of compliance procedures to ensure that all its operations comply with relevant laws and legislations.

Compliance is an essential and important part of any business, regardless of what sector the company is operating in. The purpose of compliance is to adhere to both internal policies and procedures as well as governmental laws. Implementing compliance procedures protects your company’s reputational risk, improves your company’s vision and value, and helps prevent and detect violations of rules.

Non-compliance with the standards set by law would lead to fines and penalties, as stipulated for in the applicable laws.

Manual of Compliance

Having a solid compliance manual that all stakeholders and employees follow will help you avoid fraud, waste, discrimination, and other issues that could jeopardize your company.

Your company’s compliance manual should include all compliance practices relevant to the company’s entire scope, such as the management of external regulations and internal policies, as well as an extensive employee training program.

The company compliance manual will ensure that all departments and employees collaborate in order to meet company and legal requirements. This will reduce the likelihood of major problems or violations.

Compliance Procedures in JAFZA

To comply with UAE government rules for regulating compliance procedures, “Cabinet Resolution No. 58 of 2020 regarding the procedures of the ultimate beneficiary owner “UBO” and Cabinet Resolution No. 53 of 2021 regarding administrative penalties for Resolution No. 58 violators,” Jebel Ali Free Zone (Jafza) announced that UBO registration controls would be implemented for licensed companies in the free zone. With this done, more than 9,000 companies registered in Jafza, and offshore companies can work in a safe environment.

Jafza sends out bulletins and circulars to clients regularly about compliance procedures and any changes related to.

The Compliance Department of Jebel Ali Free Zone works to identify and prevent the occurrence of regulatory risks for registered companies as well as their directors and employees by examining and auditing the identities of the owners and owners of companies and their suitability with Jafza’s terms and conditions.

It also provides guidance on how to manage and resolve these risks in order to protect firms from them through effective procedural mechanisms and instructions, such as frequent monitoring and inspection, periodic audits, and clarification of the procedures followed.

Violations of the compliance rules & regulations

In case of violation of the provisions of Cabinet Resolution No. 53, the penalties stated in the resolution will be imposed.

During periodic companies’ inspections, the Compliance Department conducts a comprehensive investigation in the event of suspected activity such as money laundering or terrorist activities, and if this is proven, the Financial Intelligence Unit is notified to take the necessary action.

Otherwise, the company is classified as high-risk, and close and continuous monitoring procedures are initiated in order to achieve full compliance.

An effective manual improves all levels of communication and interaction between management and employees in a company. The following items should be included in the compliance manual:

• Creation, implementation, revision, and delivery processes.
• Revision of compliance policies in accordance with any new or updated regulations.
• All members of the company should be aware of all the rules and laws that govern how business is done.

Enrolment Requirements

1. The client submits all the documents required by the Compliance Department.
2. The customer provides copies of the passport, the ultimate beneficiary form, and the DMS Jafza application.
3. The customer submits Jafza registration application and a Know Your Customer form (KYC), with all data filled in.
4. If the customer is a branch of a company, the customer must provide the commercial license of the parent company.
5. If any additional information or documents are required, such requirements must be submitted by the customer.
6. The Compliance Department provides all information about the company’s structure, legal form, ultimate beneficiary owner model, and KYC.