Sheikh Mansour bin Zayed, Deputy Prime Minister and Minister of Presidential Affairs, is also the chairman of Abu Dhabi Judicial Department. Courtesy: Dubai Media Office
Sheikh Mansour bin Zayed, Deputy Prime Minister and Minister of Presidential Affairs, is also the chairman of Abu Dhabi Judicial Department. Courtesy: Dubai Media Office
Sheikh Mansour bin Zayed, Deputy Prime Minister and Minister of Presidential Affairs, is also the chairman of Abu Dhabi Judicial Department. Courtesy: Dubai Media Office
Sheikh Mansour bin Zayed, Deputy Prime Minister and Minister of Presidential Affairs, is also the chairman of Abu Dhabi Judicial Department. Courtesy: Dubai Media Office

Courts

Abu Dhabi establishes dedicated court to tackle money laundering and tax evasion

New court aims to reinforce the country’s competitiveness

The National

November 10, 2020

  • English
  • Arabic

Abu Dhabi has a court to tackle money laundering and tax evasion.

Sheikh Mansour bin Zayed, Deputy Prime Minister, Minister of Presidential Affairs and Chairman of the Abu Dhabi Judicial Department, established the court on Tuesday, Wam reported.

The new court is tasked with helping to improve the litigation process and reinforce the country's competitiveness.

Youssef Al Abri, Under Secretary at the ADJD, said the new court will also support the development of the emirate's judicial system, ensure timely adjudication on cases and add to the expertise of judges.

The ADJD will now organise training for the judges and prosecutors who specialise in these cases.

The UAE has strict laws to deal with money laundering and financial crimes.

Earlier this year, the Central Bank said the UAE had made significant progress with a plan to combat money laundering and interrupt terrorist finances.

The Emirates is coordinating in areas such as governance and supervision with countries that share its commitment to fight financial crime, the National Committee for Combating Money Laundering and the Financing of Terrorism and Illegal Organisations said in August.

In June last year, the UAE become the first GCC country to launch goAML, a platform developed by the United Nations to thwart organised crime. More than 900 entities including, banks, insurance companies and money exchanges joined forces to help regulators clamp down on money laundering.

The establishment of the money laundering court follows sweeping changes announced at the weekend to the UAE's legal system with amendments to family law and other areas that affect daily lives.

This includes reforms to laws on divorce and separation, how wills and assets are divided, alcohol, suicide and the protection of women.

The Melbourne Mercer Global Pension Index

The Melbourne Mercer Global Pension Index

Mazen Abukhater, principal and actuary at global consultancy Mercer, Middle East, says the company’s Melbourne Mercer Global Pension Index - which benchmarks 34 pension schemes across the globe to assess their adequacy, sustainability and integrity - included Saudi Arabia for the first time this year to offer a glimpse into the region.

The index highlighted fundamental issues for all 34 countries, such as a rapid ageing population and a low growth / low interest environment putting pressure on expected returns. It also highlighted the increasing popularity around the world of defined contribution schemes.

“Average life expectancy has been increasing by about three years every 10 years. Someone born in 1947 is expected to live until 85 whereas someone born in 2007 is expected to live to 103,” Mr Abukhater told the Mena Pensions Conference.

“Are our systems equipped to handle these kind of life expectancies in the future? If so many people retire at 60, they are going to be in retirement for 43 years – so we need to adapt our retirement age to our changing life expectancy.”

Saudi Arabia came in the middle of Mercer’s ranking with a score of 58.9. The report said the country's index could be raised by improving the minimum level of support for the poorest aged individuals and increasing the labour force participation rate at older ages as life expectancies rise.

Mr Abukhater said the challenges of an ageing population, increased life expectancy and some individuals relying solely on their government for financial support in their retirement years will put the system under strain.

“To relieve that pressure, governments need to consider whether it is time to switch to a defined contribution scheme so that individuals can supplement their own future with the help of government support,” he said.

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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