‘Can an investment firm ask for my documents to release funds?’

It is standard practice for a financial company to request proof of identity and address when dealing with a transaction. Antonie Robertson / The National

Question: I have an investment with a company that I want to cash in. When I set it up a few years ago, I had to provide a lot of information but am now being asked for details all over again to take my money out.

The company not only wants to see my passport again but also my bank statements. I don’t see why I should provide it with this level of information when I am just taking out my money. I am not borrowing money.

The company says it cannot process the request without the additional information. Is there a government department that I can make a complaint to for failing to pay me my money? NW, Dubai

Answer: All financial transactions in the UAE are subject to legal and compliance regulations. Like most other countries, the UAE has clear anti-money laundering (AML) laws and all companies must comply with these.

The main legislation is Federal Decree-Law No. 20 of 2018 On Anti-Money Laundering and Combatting the Financing of Terrorism and Illegal Organisations. This legislation has only recently been tightened by way of a stricter law, Federal Decree-Law No. 10 of 2025, which came into force on October 14.

AML rules are in place for several reasons, but for individuals, they are mainly for protection. This is to ensure there are no fraudulent requests, that ownership is clear and legitimate and to prevent money laundering. On a wider scale, it protects the global financial system from criminal abuse, prevents terrorism financing and increases trust.

It is standard practice for a financial company to request proof of identity and address when dealing with a transaction. There is an obligation to ensure that up-to-date records are maintained for all investors and clients.

Where there is a substantial withdrawal or encashment, a copy of a recent bank statement for the account that is to receive the funds is a standard request. This is to ensure the details match the paperwork and that the individual will receive the money in their own account and that it is not being diverted to a third party.

The information is not only to tick some regulatory boxes but to protect individual clients, too.

The investment company is acting professionally by asking for appropriate documents and all information will be treated in confidence, in line with data protection legislation.

Q: I usually take my annual leave in one go and travel to my home country for a few weeks. My employer pays for the cheapest plane ticket. This year, I will be staying in the UAE for my leave as my sister has moved here. Will my employer still pay for a ticket and give me the money? BC, Sharjah

A: There is no legal requirement for any employer in the UAE to provide annual flight tickets. This has been a custom for many, but eligibility depends on the terms of the contract of employment.

The contract will need to state that a cash alternative is available if the employee does not wish to travel to their home country. If the contract does not state this, the decision rests with the employer.

BC will firstly need to check the wording in his contract to see what it says. If no cash alternative is mentioned, BC can ask his employer for cash in lieu of a ticket but has no right to a payment outside of the contract terms.

Q: I have a business registered in a free zone in the UAE, so I am properly licensed as a sole trader. I am also registered for value-added tax and complete my returns for the Federal Tax Authority (FTA).

I am trying to work with a company outside the UAE, but it is insisting that I provide them with a tax identification number (TIN). I don’t have this and don’t think it exists here. The company won’t proceed without this reference. Can you help? RL, Dubai

A: In countries that levy personal income tax, individuals will have their own tax reference of some kind, but that is not the case in the UAE. However, we have another reference that should be sufficient.

RL has a business that is registered for VAT, so she will have a tax registration number (TRN). It is a unique 15-digit code issued by the FTA to individuals as sole traders and to companies for the reporting of VAT and corporate tax compliance.

In the UAE, the terms TIN and TRN are often used interchangeably and should be recognised in other countries as equivalents.

A TIN or TRN is not issued to all residents and entities automatically. It is issued only to an organisation or individuals who are engaged in taxable activities.

Contact Keren Bobker at [e-mail] or at www.financialuae.com

The advice provided in our columns does not constitute legal advice and is provided for information only