SPC Free Zone rules and regulations

UBO & AML Inspection Process 

Sharjah Publishing City Free Zone (SPC Free Zone) is committed to maintaining the highest standards of transparency, compliance, and regulatory integrity in line with the laws and regulations of the UAE. 

As part of its role as a Company Registrar and Supervisory Authority, SPC Free Zone conducts regulatory inspections in accordance with Cabinet Decision No. 132 of 2023 and Cabinet Decision No. 109 of 2023. These inspections help ensure that registered companies comply with Ultimate Beneficial Owner (UBO) and Anti-Money Laundering / Counter-Terrorism Financing (AML/CFT) requirements. 

SPC Free Zone conducts two main types of inspections, depending on the company’s activity and risk profile. 
 

1. UBO (Ultimate Beneficial Owner) Inspection

UBO inspections focus on ownership transparency and ensure that companies have accurately disclosed the individuals who ultimately own or control the business. The following details are reviewed during the UBO inspection:  

• Shareholders and ownership structure
• Ultimate Beneficial Owners (UBOs)
• Accuracy of records in the Entity Register
• Business plan 
• Document confirming business activity
• Proof of address of all stakeholders 
• Company’s corporate bank statement 
• Board of meeting minutes (if applicable)
   

Key Requirement 

Any individual who owns or controls 25% or more of the company, or exercises effective control, must be declared. 

• UBO inspections apply to all SPC Free Zone companies.
   

2. AML / CFT Inspection

Purpose 

AML inspections assess whether a company is complying with the UAE AML/CFT framework to prevent money laundering, terrorism financing, and related financial crimes. 
 
Objectives 

• Verifying compliance with AML/CFT obligations
• Evaluating internal controls and risk-management measures
• Ensuring transparency in business activities and customer relationships
• Supporting the UAE’s national financial security objectives
• Identifying gaps and guiding corrective measures

 
Scope 

The scope of an AML inspection depends on the following details of the company: 

• Business activity
• Risk classification
• Compliance history
   
• AML inspections mainly apply to higher-risk businesses, including DNFBPs.
   

Step-by-Step Inspection Process 

Step 1: Inspection Notification 

Companies will receive an official notification from SPC Free Zone outlining: 

Type of inspection (UBO or AML) 

1. Inspection format (on-site or remote)
2. Inspection date and timeframe
3. Required documents and information
4. Purpose and scope of the inspection
    

Step 2: Preparation Before the Inspection 

To ensure a smooth inspection, companies should: 

1. Review company records and documentation.
2. Ensure UBO information is accurate and up to date.
3. Prepare AML/CFT policies and procedures (if applicable).
4. Companies are required to share the requested information and documents within 14 days of receiving the inspection notification.
5. Ensure relevant stakeholders attend the inspection meeting.

 Timely preparation helps avoid delays, warnings, or penalties. 
 

Step 3: Inspection Meeting 

During the inspection, SPC Free Zone may: 

1. Review submitted documents
2. Ask clarification questions
3. Verify business activities and ownership details
4. Assess AML controls (where applicable)

Inspections may be conducted remotely or on-site. 

Step 4: After the Inspection 

Following the inspection, companies may receive: 

• A Remediation Plan, outlining required corrective actions and deadlines (if applicable), or
• A Completion Notification, confirming the inspection has been successfully closed

Depending on the type of inspection being conducted, SPC Free Zone may request the following documents: 

• Entity Registry 
• Board meeting minutes 
• Financial statements or records of accounts
• Proof of business activity (invoices, website, brochures)
• Address verification documents
   

Additional Requirements for DNFBPs (AML Inspections) 

Companies classified as Designated Non-Financial Businesses and Professions (DNFBPs) may be required to provide additional AML/CFT documentation, including: 

• AML/CFT policies and procedures
• Risk assessment reports
• KYC and UBO records
• Compliance officer details
• AML reporting history
• Training and audit records
• Benefits of compliance

Companies that maintain timely and rigorous compliance measures benefit from: 

• Smooth and efficient inspections
• No delays in licensing or renewals
   

Consequences of Non-Compliance 

Failure to comply with the regulations may result in: 

• Written warnings
• Delays in processing company services or license renewal
• Administrative or financial penalties
• Further regulatory action

Failure to respond to or submit requested information within 14 days, in accordance with Cabinet Decision No. 132 of 2023, may lead to enforcement measures. 

 
Conclusion 

SPC Free Zone is committed to ensuring a transparent, secure, and business-friendly environment. 

By clearly distinguishing between UBO inspections (ownership transparency) and AML inspections (financial crime prevention), SPC Free Zone applies a proportionate, risk-based supervisory approach. 

Early preparation, accurate records, and timely cooperation go a long way into ensuring a smooth inspection experience, supporting your long-term business success in the UAE.