The DIFC has opened two consultations to gather industry feedback on the draft legislation, which form part of the centre’s 2024 strategy.
When the new law covering the CRS is enacted, the governing body of the financial free zone, the Dubai International Financial Centre Authority (DIFCA), will automatically exchange information with partner institutions, making fraud and tax evasion easier to detect.
At present 53 countries have committed to undertake their first exchanges of financial information this year, while the UAE government plans to be one of a further 47 countries which will start sharing information with other signatories to the CRS by 2018.
The UAE committed to joining the CRS in 2016 and financial free zones, like the DIFC, must follow its lead once it signed the international agreement.
Robust trust and foundations laws
The proposed new trust laws are designed to enhance the operating environment for private wealth management and succession planning platforms on both a conventional and Sharia compliant basis.
The new laws form part of the DIFC’s implementation plan relating to the 56 recommendations made by the centre’s Wealth Management Working Group.
Essa Kazim, governor of the DIFC, said the new rules would give “lifetime and succession planning for families at the Centre… a robust legal status”.
The recommendations include establishing a Family Business Centre to support regional and international family offices looking to relocate to the DIFC.
