Sanctions underscore UAE’s commitment to international tax transparency through enforcement of CRS and FATCA regulations
The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) has taken decisive enforcement action against 23 entities for failing to comply with international tax reporting obligations, levying fines totalling Dhs610,000. The violations relate to breaches of the Common Reporting Standard (CRS) Regulations 2017 and the Foreign Account Tax Compliance Act (FATCA) Regulations 2022.
These regulatory frameworks — CRS and FATCA — are cornerstones of the global initiative to strengthen tax transparency and curb international tax evasion. By adhering to these protocols, countries are able to exchange financial account information automatically with international counterparts, creating a network of cooperation aimed at financial accountability.
The enforcement measures were prompted by various compliance failures. Among the infractions were entities’ failure to submit mandatory risk assessments and annual information returns, neglecting due diligence obligations, submitting inaccurate or incomplete data, and not collecting valid self-certification forms from account holders.
“ADGM is committed to upholding international tax reporting standards,” said Emmanuel Givanakis, CEO of the FSRA at ADGM. “These enforcement outcomes reflect the FSRA’s firm support for the UAE’s commitment to financial transparency and alignment with global commitments to information exchange. We are committed to identifying and addressing practices that do not meet our commitment to combat tax evasion through implementing robust and effective regulations in line with leading global standards of compliance and reporting responsibility.”
As part of its broader strategy, the FSRA’s actions reinforce the UAE’s position as a cooperative financial hub and underline its alignment with international best practices in tax governance. The UAE’s participation in global tax initiatives continues to play a vital role in reinforcing investor trust and sustaining the country’s international financial reputation.
