UAE Labour Ministry revised fees and fines from January 4

His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, has issued a resolution revising the Ministry of Labour’s fees and fines.

The Cabinet Resolution No. 40 for the year 2014, amending some of the fines and fees in the Cabinet Resolution No. 10 for the year 2012 will be effective from January 4, according to the latest issue of the official gazette.

• Delay in renewing a job contract for 60 days from the date of the worker’s entry into the country or the date of adjusting the worker’s legal status will invite a fine of Dh500 per month even if the delay is only for less than a month, according to the new resolution. At present the fine is Dh1,000.
• The fine for failure to get a mission contract issued within 30 days from the date of the worker’s entry and the failure to renew it for seven days after its expiry is Dh100 per day.
• Companies that falsify Emiratisation records will invite a fine of Dh20,000 per worker and Dh5,000 will be levied from the companies for providing incorrect information in the Wage Protection System (WPS) to evade or manipulate the regulations per case. The maximum fine in the last case will be Dh50,000.
• Non-settlement of employee’s wage for 60 days will attract a fine of Dh5,000 per worker with the maximum of Dh50,000 if the case includes more than one worker. Companies forcing employees to sign forged documents showing that the payment of their dues was made will have to pay Dh5,000 as fine per worker. Dh20,000 is the fine per case for non-compliance with the workers’ accommodation regulations and for not employing the worker for a period exceeding two months
• Charging the worker for the visa and employment fees or deducting such fees from his wage without any legal reason will attract a fine of Dh5,000. This fine is Dh20,000 at present.
• The fine will be Dh20,000 if the company fails to comply with the Emirati employment policies or doesn’t respond to the Ministry of Labour’s summons within the time frame specified by the ministry.
• Failure to report absconding workers in compliance with the relevant rules and filing a malicious absconding report will also attract a Dh20,000 fine per worker.
• The company will be fined Dh5,000 if it flouts the midday break rule per worker. The maximum fine will be Dh50,000 if the case includes more than one worker.
• Submitting forged documents or incorrect information to the ministry will attract a Dh20,000 fine per case.
• The failure to subscribe to the wage protection system, adhere to the professional health and safety standards, report work injuries, occupational diseases or a worker’s death to the ministry, and/or failure to follow medical hazards and emergency procedures will attract a fine of Dh10,000 per case.
• Failure to remove accommodation violation on time will attract Dh10,000 per case.
• Failure to renew licence of a brokerage agency within 60 days from the date of expiry will attract Dh1,000 per month, while the fine for failing to renew a recruitment agency within 60 days from the date of expiry will be Dh2,000 per month.
• The fee for work permit card for a period of two years will be Dh300 for the first category. The fee for second category employees, which include three levels, will be Dh600, Dh1,500 and Dh2,000 respectively.
• The fee for the third category will be Dh5,000 for renewing their work permits.
• A fee of Dh5,000 will be applicable for issuance of work permits for those more than 65 years with a validity of two years.
• Fines accumulated for failure to obtain or renew labour cards on time, before this resolution takes effect on January 4, will be a maximum of Dh1,000 per worker, provided that payment is made within six months from January 4.
• A Dh500 fine will be collected for delay of payment per month

UAE labour card fines cut to Dh1,000 for 6 months,starting January 4 till June 30 2015.

The UAE’s Ministry of Labour has announced granting all employers a reduction to all issued fines, regardless of their amounts per employee, to Dh1,000 for a grace period of six months starting January 4 till June 30 2015.

“Electronic labour card offences have all been dropped to a Dh1,000 per employee,” said Humaid bin Deemas Al Suwaidi, Assistant Undersecretary of the Ministry’s Labour Affairs, said during the press conference which was held at the ministry’s headquarters on Sunday.

"The deadline include electronic labour cards that have not been issued or renewed until the end of this current month which mount to 100,000 electronic cards from 40,000 facilities, marking 13 per cent of the total registered facilities in the ministry," he said.

He pointed out that about 95,000 fines were issued for not renewing workers cards and 5,000 have been fined for entering the country without applying for new labour cards or for not cancelling their work permits, or reported missing from duty.

He revealed that fines have reached a total amount of Dh2.85 billion which will settle to around Dh100 million after the application of the decision. “This confirms the government's keenness to support employers and motivate them to settle those fines, which is a tool used by the ministry to control and regulate the labour market and provide protection to the workers," Bin Deemas added.

He explained that there are thousands of cards, of which some have fines reaching up to Dh53,000. “Now that big fine has been settled and reduced to only a thousand dirhams, this is an opportunity for all employers and business owners to settle those fines imposed on them and remove any restriction in their records at the ministry," Humaid said.

Offenders during the grace period, will be stopped from obtaining all kinds of labour permits until they settle all the above mentioned fines. “Starting July 2015 employers will be asked to pay the reduced amount of Dh1,000 fine per card in addition to another Dh500 for each month of delay,” Bin Deemas pointed.

Employment contract fines

Meanwhile, Humaid bin Deemas Al Suwaidi said stated that the Ministry of Labour, starting January 4, 2015, a Dh500 per month will be imposed on employers who fail to provide employment contracts to the ministry (signed by the employee) within a 60 day period starting from the entry of the employee to the country."

He said that the period of 60 days is sufficient enough for the employer to sign a contract with his new employee through Tas’heel service centres to properly document it and any excuses for delay will not be accepted.

He announced that there is coordination between the Ministries of Labour and Ministry of Interior to not to issue a visa, unless the employer signs that agreement during the specified period.

UAE 43rd National Day

India launches e-visa on arrival for UAE and 42 other nations

With the launch of electronic visa (e-visa) facility on Thursday, tourists from 43 countries can apply for Indian visa in four simple steps.The step is aimed at boosting tourism sector and offer hassle-free travel to foreign nationals.
Union Home Minister Rajnath Singh, along with Union Minister of Culture and Tourism Mahesh Sharma launched the Tourist Visa on Arrival (TVOA) service enabled with electronic travel authorisation (ETA) scheme here.
Tourists from countries such as the US, the UAE, Brazil, Cambodia, Kenya, Oman, Singapore, Norway, Thailand, among others can avail this facility."India has a unique advantage in tourism sector owing to its geographical location and that no other country offers such abundance of diversity in weather conditions," said Singh.
This visa will allow entry of the tourists into India within 30 days from the date of approval of ETA and will be valid for 30 days stay in India from the date of arrival in India.
The facility will be extended to other nations in a phased manner.The tourists will be allowed to enter and depart from nine international airports - Bengaluru, Chennai, Kochi, Delhi, Goa, Hyderabad, Kolkata, Mumbai and Thiruvananthapuram.
Tourists availing this facility would be able to go for usual sightseeing and recreational activities. The tourism ministry has included facilities like short duration medical visit and casual business visit with e-visa.Partial list of countries
The TVoA enabled with ETA Scheme will facilitate nationals of 43 countries including:

• Australia
•     Brazil
•     Cambodia
•     Cook Islands
•     Djibouti
•     Federated States of Micronesia
•     Fiji
•     Finland
•     Germany
•     Indonesia
•     Israel
•     Japan
•     Jordan
•     Kenya
•     Kingdom of Tongo
•     Laos
•     Luxembourg
•     Mauritius
•     Mexico
•     Myanmar
•     New Zealand
•     Niue
•     Norway
•     Oman
•     Palestine
•     Papua & New Guinea
•     Philippines
•     Republic of Kiribati
•     Republic of Korea (i.e. South Korea)
•     Republic of Marshall Islands
•     Republic of Nauru
•     Republic of Palau
•     Russia
•     Samoa
•     Singapore
•     Solomon Islands
•     Thailand
•     Tuvalu
•     UAE
•     Ukraine
•     USA
•     Vietnam
•     Vanuatu
•  

India begins levying service tax on remittance fee from abroad

India has started levying a service tax on “fees or commission” charged by banks and financial institutions for facilitating remittances from abroad.

This may slightly increase the cost of remittance to India, which will mainly affect the majority of low-income Indian expatriates in the UAE and other Gulf countries who remit money every month to their dependants back home.

However, it will not pose a big burden on expatriates as the tax is imposed only on the “fee or commission charged by banks for facilitating remittances” and not on the actual remittance.

The remittance fee from the UAE to India costs up to Dh20. A part of this amount is paid to the agents in India, which will attract the new service tax. As Gulf News reported on October 16, a circular issued by India’s Central Board of Excise and Customs (CBEC) on October 14 imposed a 12.36 per cent service tax on the “fee or commission” charged for facilitating remittances from abroad. But it was not clear whether the government would start levying it with immediate effect.

The agents in India who facilitate remittances from abroad have recently received notice from the Indian tax authorities to pay the service tax, effective October 15, a senior executive of the remittance service industry told on Tuesday.

“Although the fee or commission charged by agents in India [banks and other financial institutions in India] varies, it may be between Dh5 and Dh10 for remittances from the UAE,” said Y. Sudhir Kumar Shetty, vice chairman of Foreign Exchange and Remittance Group (FERG), an official platform of the companies engaged in the business of money exchange and remittances in the UAE.

Considering the fact that Dh10 is the maximum fee paid to agents in India, the 12.36 per cent tax may go up to Dh1.24 (Rs20.9), Shetty, who is also the COO of UAE Exchange, said.

Although it is a small amount for a single transaction, an agent doing thousands of transactions has to pay a huge amount as tax which may be passed on to the customers, he said.

A prominent financial consultant in India said although the tax is a small amount, it is unjustified as Non Resident Indians (NRIs) deserve incentives for bringing foreign exchange into India.

UAE Ministry of Labour will stop granting work permits to establishments not complying with judicial rulings

Saqr Ghobash, Minister of Labour, recently stated the Ministry of Labour will stop granting work permits to abstaining establishments if found not complying with final judicial rulings.

He pointed out that owners will be granted 30 days ultimatum to resolve court issues to avoid work permits blockage on their other facilities as well.
The suspension decision encompasses various types of work permits including labour recruitment, work permits and work transfers, family visa and temporary work permits and work permits for minors.

Humaid bin Dimas, Assistant Under-Secretary of the Ministry’s Labour Affairs, said, "The ministry has almost completed the data inventory of all abstaining facilities, in collaboration with the departments to ensure the smooth implementation of the resolution and achieve its desired goals."

"The suspension of work permits to abstaining establishments that refrain from implementing the final judicial judgments with regards to the labour issues, comes within the framework of country’s policies that are aimed at strengthening laws and respecting the verdicts issued by the judiciary system."

Bin Dimas noted, "The suspension decision supports the ministry's strategic plan to protect labour rights, and provide all forms of protection for workers, while ensuring the interests of employers are met in accordance with the national legislations, and in conformity with the international conventions and standards."

He pointed out that the decision, which was issued by the Labour Minister, constitutes one of the tools used by the ministry to enforce the adherence to the legislation, adding that the role of the ministry in labour disputes does not stop by just referring complaints not be resolved amicably between both sides to the court, but also contribute to the implementation of the verdicts.

It suspends the work permits for non-compliant establishments through cooperation with the courts.

"The Ministry of Labour’s policy in granting any facility a work permit for foreign manpower is based mainly on the extent of the employer’s commitment to labour laws by providing labour rights protection, providing basic living requirements and foremost pay them on time," bin Dimas said.

He also mentioned that the ministry will lift the suspension on the facilities after obtaining a request by the judge, stating that they have implemented the court verdict

First phase of compulsory health insurance cover in Dubai effective from October 31 2014

The Dubai Health Authority’s (DHA) first phase of compulsory health insurance cover effective October 31 will involve approximately 300 companies who employ 1,000 or more employees.

The first of four phases is expected to cover up to 700,000 employees, said authorities on Tuesday,

Non-compliance with the law will result in fines and penalties that will be levied on the erring companies who fail to pay the full cost of basic health insurance for each employee.

DHA Director-General Eisa Al Maidour said on Tuesday that the first phase of the roll-out will have far-reaching effects for workers who will now have basic health care.

“This is a major milestone in ensuring access to health care. This phase of implementation applies to approximately 700,000 employees in Dubai. By mid-2016, everyone in Dubai will have mandatory access to health insurance. So far, we are pleased with the results of the roll out and are thankful to all those employers who have supported us by adhering to the deadline. However, there are still some employers who have not yet met the deadline and we urge them to act promptly.”

The DHA director for Health Funding Dr Haidar Al Yousuf noted that the “legal requirement is for providing the basic insurance package that falls between Dh600-Dh700 annually. However, there are companies that are providing more than the basic package and also providing insurance cover for dependants. It’s a mixed bag,” he said.

Right now, the focus is the insurance cover for the employees. Having insurance cover for the dependants will be covered in Phase 3 of the implementation which falls in 2016. But the responsibility of providing insurance cover for dependants falls on the employee. DHA is working with insurance companies to provide reasonable cover for dependants, according to Dr Yousuf.

Providing information on how the law would be implemented, Al Maidour said that soon the DHA will use direct electronic links with relevant government stakeholders to enforce the law. “Health insurance will be linked to the residency visa in collaboration with the relevant authorities including free zones.”

In other words, no visas will be renewed without a valid insurance cover once the law comes into effect.

Remittance by NRIs to India draws service tax

Remittances by non-resident Indians may become marginally costlier with the Central Board of Excise and Customs clarifying that commission or fee charged by agent based in India from the overseas agent will attract service tax. The apex indirect taxes body has issued a circular to clear the air regarding taxation of remittances and services provided by intermediaries. The board has said no service tax will be payable per se on the amount of foreign currency remitted to India from overseas. However, an Indian bank or other entity acting as an agent to money transfer service operator, facilitating in the delivery of the remittance to the beneficiary in India for a fee will be liable to tax.

The board had issued a circular in July, 2012, after the country switched to negative list regime, wherein it had said there will be no service tax per se on the foreign exchange remitted to India from outside for the reason that money does not constitute a service and that conversion charges or fee levied for sending such money would also not be liable to service tax as the person sending money and the company conducting the remittance are both located outside India.

The latest circular comes after field formations highlighted that foreign money transfer service operators conducting remittances to beneficiaries in India had appointed Indian Banks and financial entities as their agents in India. 

Circular No. 180/06/2014 – ST
F. No 354/105/2012-TRU (Pt.)
Government of India, Ministry of Finance, Department of Revenue
Central Board of Excise and Customs, Tax Research Unit
                                                                                                  Room No 153, North Block, New Delhi
                                                                                                  Dated 14th October, 2014

To
Chief Commissioner of Customs and Central Excise (All)
Chief Commissioner of Central Excise & Service Tax (All)
Director General of Service Tax
Director General of Central Excise Intelligence
Director General of Audit
Commissioner of Customs and Central Excise (All)
Commissioner of Central Excise and Service Tax (All)
Commissioner of Service Tax (All)
Madam/Sir,
Subject: -  Levy of service tax on activities involved in relation to inward remittances from abroad to beneficiaries in India through MTSOs- reg.
 
            Vide circular No. 163/14/2012–ST, dated 10th July, 2012, on the issue of  levy of service tax on the activities involved in the inward remittance it was clarified that there is no service tax per se on the  foreign exchange remitted  to India from outside for the reason that money does not constitute a service and that conversion charges or fee levied for sending such money would also not be liable to service tax as the person sending money and the company conducting the remittance  are both located outside India. It was also clarified that the Indian bank or financial institution who provides service to the foreign bank or any other entity is not liable to service tax as the place of provision of service shall be the location of the recipient of service. This clarification covers the scenario where the Indian bank or financial institution provides services on principal to principal basis to the foreign bank/entity, on its own account, and thus the service is covered by the general rule, i.e. rule 3 of the Place of Provision of Service Rules, 2012.

2.         However, subsequently, it had been brought to the notice of the Board that the foreign money transfer service operator (MTSO), conducting remittances to beneficiaries in India, have appointed Indian Banks/financial entities as their agents in India who provide agency /representation service to such MTSO for furtherance of their service to a beneficiary in India. The agents are paid a commission or fee by the MTSO for their services. The entire sequence of transactions in remittances of money from overseas through the MTSO route is as under:

Step 1: Remitter located outside India (say ‘A’) approaches a Money Transfer Service Operator (MTSO)/bank (say B) located outside India for remitting the money to a beneficiary in India; ‘B’ charges a fee from ‘A’.

Step 2:  ‘B’ avails the services of an Indian entity (agent) (say ‘C’) for delivery of money to the ultimate recipient of money in India (say ‘E’);  ‘C’ is paid a commission/fee by ‘B’.

Step 3: ‘C’ may avail service of a sub-agent (D). ‘D’ charges fee/commission from ‘C’.

Step 4: ‘C’ or ‘D’, as the case may be, delivers the money to ‘E’ and may charge a fee from ‘E’.

 3.         Clarifications have been sought as to whether such agents (referred in Step 2 above) would fall in the category of intermediary, and if so, whether service tax would be leviable on the commission/fee amount charged by such agents. Clarifications have also been sought as to whether the services provided by sub agent (referred in step 3 & 4 above) are leviable to service tax and on certain other related issues.

4.         The issues discussed above have been examined and it is clarified as follows,-

1
Whether service tax is payable on remittance received in India from abroad?
 No service tax is payable per se on the amount of foreign currency remitted to India from overseas. As the remittance comprises money, it does not in itself constitute any service in terms of the definition of ‘service’ as contained in clause (44) of section 65B of the Finance Act 1994.
2
Whether the service of an agent or the representation service provided by an Indian entity/ bank to a foreign money transfer service operator (MTSO) in relation to money transfer falls in the category of intermediary service?  

Yes. The Indian bank or other entity acting as an agent to MTSO in relation to money transfer, facilitates in the delivery of the remittance to the beneficiary in India. In performing this service, the Indian Bank/entity facilitates the provision of Money transfer Service by the MTSO to a beneficiary in India.  For their service, agent receives commission or fee. Hence, the agent falls in the category of intermediary as defined in rule 2(f) of the Place of Provision of Service Rules, 2012.
3  
Whether service tax is leviable on the service provided, as mentioned in point 2 above, by an intermediary/agent located in India (in taxable territory) to MTSOs located outside India?
   Service provided by an intermediary is covered by rule 9 (c) of the Place of Provision of Service Rules, 2012. As per this rule, the place of provision of service is the location of service provider. Hence, service provided by an agent, located in India (in taxable territory), to MTSO is liable to service tax.

The value of intermediary service provided by the agent to MTSO is the commission or fee or any similar amount, by whatever name called, received by it from MTSO and service tax is payable on such commission or fee.
4.
 Whether service tax would apply on the amount charged separately, if any, by the Indian bank/entity/agent/sub-agent from the person who receives remittance in the taxable territory, for the service provided by such Indian bank/entity/agent/sub-agent
    Yes. As the service is provided by Indian bank/entity/agent/sub-agent to a person located in taxable territory, the Place of Provision is in the taxable territory. Therefore, service tax is payable on amount charged separately, if any.
5.
 Whether service tax would apply on the services provided by way of currency conversion by a bank /entity located in India (in the taxable territory) to the recipient of remittance in India?
 
Any activity of money changing comprises an independent taxable activity. Therefore, service tax applies on currency conversion in such cases in terms of the Service Tax (Determination of Value) Rules. Service provider has an option to pay service tax at prescribed rates in terms of Rule 6(7B) of the Service Tax Rules 1994.
6.
  Whether services provided by sub-agents to such Indian Bank/entity located in the taxable territory in relation to money transfer is leviable to service tax?
  Sub-agents also fall in the category of intermediary. Therefore, service tax is payable on commission received by sub-agents from Indian bank/entity.

 5.         Accordingly, Circular No. 163/14/2012-ST, dated 10.7.2012 stands superceded.

6.         Trade Notice/Public Notice may be issued accordingly.

 7.        Please acknowledge the receipt of this circular. Hindi version to follow.


Yours sincerely,
                                                                                                (Dr. Abhishek Chandra Gupta)

Technical Officer, TRU

Tel: 011-2309 2037

Short-term UAE visit visa via smartphone

The Ministry of Interior (MoI) has launched three new procedural services via smartphones, which include issuance of short-term visit visas (for 30 days), renewal of citizens’ passports, and issuance of Certificates of Good Conduct (Criminal Status Certificates).

The new services are launched under the slogan 'One Application... Multiple Services' and embody the UAE Smart Government initiative.

Major-General Dr Ahmed Nasser Al Raisi, Head of the e-Services and Smart Applications Team at the MoI, explained that the new short-term visa issuance service saves time for citizens and residents alike, and enables individuals to apply for a 30-day visa through their smartphones, without the hassle of visiting the General Directorate of Residency and Foreign Affairs at the Naturalisation Residency and Port Sector.

Once the visa is issued, it will be delivered to the applicants via accredited entities designated by the MoI.

He also noted that the Civil Defense informatics services provide individuals and institutions with the necessary information about compliance certificates, as well as executive approvals for architectural, gas, and decoration.

More new services

Maj-Gen Dr Al Raisi announced that the MoI is planning to launch a new bundle of services for Traffic, Naturalisation, Residency, and Civil Defense sectors; as well as other services in the upcoming period via the UAE - MoI smartphones apps.

“The MoI has already initiated the necessary executive procedures to expand these services and make them accessible to all citizens and residents,” he said.

Maj-Gen Dr Al Raisi said, “A Smart Application Centre was established at the Ministry of Interior. It is operated by a highly qualified team of Emirati citizens, to handle all electronic procedures pertaining to these services, and respond to customers’ inquiries via the call center on 8005000.”

He also noted that to date 205,000 individuals are using the applications that the MoI has launched early this year, with an average 54,000 uses per day. While the number of subscribers via the Emirates ID card amounts to 62,000 users.

MoI platform supports Apple, Android, BlackBerry and Windows compatible smartphones.

It provides an electronic link with a number of partners in the UAE, car inspection and insurance companies; as well as an integrated comprehensive link to the ministry’s website, through the unified login mechanism (username and password) to obtain services from any channel of electronic communication.

Users can register once using the single sign-in feature on the website or through smartphones, and gain access to all of the MoI’s services.

20 second immigration clearence at all UAE airports within few months

 The smart gates now available at Dubai International Airport and Abu Dhabi Airport provide residents as well as visitors easy passing through the immigration formalities in 20 seconds approximately.

Registration for the e-Gate is required and it will save the details of the traveller in the system. Currently, registration in Dubai only provides access at Dubai’s airport, and registration in Abu Dhabi only to the airport in the capital.

This is soon to change, explained Saif Al Mazrouei of the General Directorate of Residency and Foreigners Affairs (GDRFA) at Gitex Technology Week.

“All e-Gates will be unified and all airports will work together, so an e-Gate user will only be required to register once.”

Currently e-Gate registration is available free-of-charge at the airports where the technology is available, at GDRFA service centers and at Dnata offices. The applicant needs to be able to present a valid passport and residency visa.

Once registered, the long queues at the immigration desk of the airport can be skipped, and the traveller can head directly to the e-Gate. Here, he will first be asked to present the passport, after which a first gate opens.

An eye scan will verify whether the person is indeed the same as the passport holder, and the passport validity will be checked. When both verifications are successful, the second gate will open and the process will be complete.

The current system is an updated version of the older e-Gate system, which required passengers to present an e-Gate card that had to be purchased.

Although the old e-Gate system was available at all airports, the new technology was only recently introduced as a trial basis, and will be expanded to all airports before the year-end.

Within the next couple of months, the latest e-Gate technology will become available at all airports in the country. Once a person has registered as an e-Gate user, this will provide access to e-Gates of all airports in the UAE.

Dh20,000 fine for 'visa trading' firms in UAE

Companies involved in visa trading without any other business will be fined Dh20,000 in line with a federal cabinet decision that was enforced in August.

The penalty could reach Dh50,000 in case the company repeated that offence within a year, according to the new decision issued by the Dubai-based daily Al Bayan.

It said the decision is intended to crack down on “fake” companies which are registered in the UAE but are not involved in any business except trading in visas for expatriates.

“This is a very serious phenomenon as it gives rise to illegal migrants at a time when the country is locked in a drive to end anarchy and ensure stability,” the paper said, quoted an official at the ministry of interior.

UAE slashes cost of property investor visa by 45%

The UAE has slashed the cost of getting a property visa by 45 per cent, a move that could see more foreign property owners spending time in the country.The six-month visa, which was Dh2,000 prior to August 1, will now cost Dh1,100.

The conditions continue to remain the same and include property valuation to be above Dh1 million, the owner requiring an income of Dh10,000 per month, the property has to be ready, etc.

Property owners have welcomed the reduction in the cost.Though no official numbers are available as to how many property visas have been issued by the immigration departments across the emirate, industry sources say property visa is popular mostly among Russians, Iranians and Pakistanis.

“These nationalities mostly tend to apply for property visa for their families,” industry sources said.

Over Dh37 billion were pumped into Dubai’s property market by more than 140 nationalities with total transaction crossing Dh113 billion in the first six months 2014.

UAE to issue emergency entry permits valid for 4 days

The UAE will issue emergency entry permits, as per Cabinet decision No 22 for 2014, regulating naturalisation and residency services.

According to a report in 'Al Khaleej', travellers on an airline sponsorship will be eligible for an emergency entry permit valid for four days against a payment of Dh100.

The report quotes Brigadier Dr Rashid Sultan Al Khodr, Vice-President of Legal Affairs, Ministry of Interior and official spokesperson of Naturalisation, Residency and Ports Affairs.

Al Khodr said that the permit will be granted to travellers in emergency cases at air terminals, including when a traveler is sick or a flight is cancelled due to bad weather conditions or a technical fault in the aircraft.

The report quoted Al Khodr as pointing out that the emergency entry permit is in keeping with the pace of development at all airports across the country. It also addresses the situation of emergency traffic at airports.

"Entry permits for studies or treatment has not been changed, but has been amended. These are now valid for multiple entry," Al Khodr said, adding that these amendments are in order to facilitate medical tourism and facilitate the quick and easy movement of beneficiaries.

New visa fee system in UAE from August 1st 2014

Effective on Friday, the employment visa for a worker sponsored by governmental bodies will cost Dh200 per year, while the visa charge for workers employed by the private sector or free zones will be Dh250 per year.
A new visa fee structure signed by Lieutenant General Shaikh Saif Bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Interior, states that the residence visa for an investor or partner will cost Dh250 per year.
The residence visa for a family member of a worker employed by governmental bodies will cost Dh200 per year, while the charge for workers employed by private businesses and free zones as well as investors and partners of businesses will be Dh250.
Renewal of the residence visa will cost Dh200 per year for a family member of a worker employed by governmental bodies, private sector or free zones, while the renewal charge for investors and partners will be Dh250 per year.
The entry permit or its renewal for domestic workers sponsored by Emiratis or citizens of GCC countries will cost Dh150 per year, while the charge for workers sponsored by foreigners will be Dh200. The visa for a domestic helper sponsored by an investor or a partner will cost Dh250.

The new measures will include the issuing of a new array of entry permits and visas, such as multiple entry permits for visit or work; the activation of study visas, and entry permits for medical care and attending conferences.

• A multiple tourist entry permit will cost Dh200, while multiple entry visa for work will cost Dh2,100.
• A visit visa for residents in GCC countries will cost Dh200, while its renewal will cost Dh700.
• An entry permit for study or training will cost Dh550, while its renewal will cost Dh600.
• An entry permit for medical treatment will cost Dh550, while a multiple entry visa for treatment will cost Dh1,400. The same fees will be applicable to patients’ companions.
• The renewal of a visa for treatment will cost Dh500, while the charge for the companions will be Dh600.
• The transit visa issued to travellers transiting through UAE airports for 96 hours and sponsored by an airline operating in the country, will cost Dh100.
• A Dh5,000 refundable deposit will be collected for cancelling a sponsor’s residence visa without cancelling the visas of the sponsored family members, according to the decision signed by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.

The deposit will be refunded once the sponsor adjusts their status.

A Dh3,000 refundable deposit will be collected for sponsorship of each family member for a female investor, while a Dh5,000 refundable deposit will be collected for humanitarian cases determined by the Minister of the Interior.

The new Cabinet decision sets up a fund for the deportation of violators of the residency rules. Resources for the fund will come from deposits encashed after applicants fail to honour their obligations under the law.

A Dh100 fine will be imposed on users of residency department portals who fail to fill in applications accurately, according to the new rules.

Individual applicants who fail to honour any declaration or affidavit will be fined Dh500, while in the case of a corporate applicant the fine will be Dh2,000.

Companies that fail to adjust the legal status of their sponsored workers on time will be fined Dh1,000 for each worker, while failure to report any change in the company’s details to the ministry will cost Dh1,000.

A Dh5,000 fine will be imposed on those who misuse the residency system or submit bogus reports to the residency departments across the country.

Repeat offenders within a year will have their fines doubled, not exceeding Dh50,000.
 Types of visas and fees

• Employment Visa (Government): Dh200
• Employment Visa (Private Sector, Free Zones, Investors): Dh250
• Residence Visa (Government) Dh200
• Residence Visa (Private Sector, Free Zones, Investors): Dh250
• Employment Visa (Domestic workers sponsored by Emiratis, GCC citizens): Dh150
• Employment Visa (Domestic workers sponsored by residents): Dh200
• Employment Visa (Domestic workers sponsored by investors): Dh250
• Residence Visa for real estate owners: Dh1,100
• Multiple Entry Visa for work: Dh2,100
• Visa for medical treatment: Dh550
• Multiple Entry Visa for treatment: Dh1,400
• Residence Visa for study or training: Dh550
• Multiple Entry Visa for work or tourism: Dh1,500
• Entry Visa for GCC State Resident’s Companions: 150
• Renewal of GCC State Residents Companions’ Visa: 250
• Entry Visa for GCC State Residents: Dh200
• Renewal of GCC State Resident’s Visa:Dh700
• Transit Entry Visa: 100

New visa fee system to be launched in UAE from August 2014

The General Directorates of Residency and Foreign Affairs at the Ministry of Interior has completed its technical and services preparations to ensure a flexible implementation of the new visa and fees system across the naturalization, residency and ports affairs sector.

The system will be effective August beginning, by virtue of the Cabinet`s resolution number 22 for the year 2014, regarding the organisation and development of the services at the MoI`s naturalization, residency and ports affairs sector.

Lt. General Sheikh Saif bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Interior, issued the ministerial decision number 377 for the year 2014, which amended the applicable regulations on foreigners’ entry and residence. The ministry has announced the promulgation of the new visa fees within the next few days on their website: http://moi.gov.ae.

Major-General Khalifa Hareb Al Khaili, Acting Assistant Undersecretary of the Ministry of Interior for Naturalization, Residency and Ports Affairs, mentioned that the next stage will include the issuance of a new array of entry permits and visas, such as the multiple entry permits for visit or work; the activation of study visas, and entry permits for medical care and attending conferences.

“This comes in response to community members needs and supports various activities, in accordance with the Cabinet`s decision,” Maj-Gen Al Khaili explained.

He also said that the ministerial decision number 377 for the year 2014 coincides with the Cabinet`s decision. The approved amendments take into account the quality and development of services, in addition to meeting social requirements and activities in a way that supports various aspects of economic, touristic and social activities.

The new decision also focuses on violators, which is the key issue in the suggested amendments, as part of an integrated system, which ensures the field efficiency of executive authorities and customers’ satisfaction.

Age bar for Indian maids in Saudi Arabia set between 25 and 50 years

The age of Indian domestic workers looking for employment in Saudi Arabia has been set between 25 and 50 years under a new employment agreement finalised by the two countries, media reported.

“Our agreement with India sets the age of the domestic workers coming to the Kingdom [Saudi Arabia] at between 25 and 50 years. If an Indian maid aged 25 agrees to come to Saudi Arabia, the Indian government will not prevent her,” media reported citing Ahmad Al Faheed, Saudi labour ministry undersecretary for international affairs as saying on Sunday.
Al Faheed said that the maids would be subjected to a crash course in their respective states in India before being sent to Saudi Arabia.Such training will be provided by labour agencies in India, he said.

Moreover, Saudi labour agencies are planning to set up offices in India to supervise procedures for the recruitment of maids in Saudi Arabia, including visa, travel, training and other issues, the report said.
Earlier this month, the Saudi-Indian joint committee on labour issues finalised the recruitment contract of domestic workers that consists of several provisions to ensure the authenticity and implementation of the standard employment contract, the recruitment cost, action against recruitment agencies violating laws and a mechanism to prevent cheating by middlemen.

The new recruitment contract is aimed at easing a shortage of domestic workers in the world’s largest oil-exporting country.

The standard employment contract provides minimum wages, working hours, paid holidays and a dispute settlement mechanism.

However, the joint agreement also sets forth specific conditions for incoming domestic workers.

“They should be of good conduct, should not have legal or criminal cases. They should pass a medical check-up, and abide by the laws and traditions during the period of work in the kingdom,” the report said.

UAE e-labour cards from today, Employers can apply electronic labour cards and contracts through Tas’heel

The Ministry of Labour has announced that it will stop use of old plastic labour cards and paper contracts starting from today and will bring in new electronic work permits and contracts in lieu of the old ones.

It will replace the traditional plastic cards and paper contracts to implement the decision issued by the Saqr Ghobash, Minister of Labour, the ministry said in a release.
The move came as a step towards e-transformation in their provided services, which is part of commitment towards the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai to provide high-quality services to customers, meet their desires and achieve their satisfaction.
The ministry stated that the employers can apply for electronic labour cards and contracts through Tas’heel service centres across the UAE or within their companies only if they were registered under Tas’heel.

Moreover they should apply for these electronic services within 60 days from the workers entry to the UAE, where the ministry will grant the applicant a preliminary approval after meeting the conditions and then issue their permits electronically, their data will be sent to General Directorate of Residency and Foreigners Affairs to complete their residency procedures.

The Labour Ministry has urged all companies to apply for electronic employment contracts during the prescribed period of 60 days, in order to avoid a fine of Dh1000 for each month of delay.

The ministry said that it will stop issuing any new work permits to uncommitted companies until they apply for the new electronic Labour cards and employment contracts if they’re required to, or provide rational justifications for not issuing them on time.
Employers and workers can check their work permit and contract through ‘e-netwasal’ service, which is available within the ministry’s webpage (www.mol.gov.ae) after signing up for free, employees can benefit from the services, as well as employers through checking several reports about their companies.

Emirates Identity cards will be recognised as the official identification documents, especially by the inspectors of the ministry, as the ID card will not be issued to workers who do not have work permits by the Ministry of Labour. Employers must handout ID cards to their owners to be ready when questioned by Labour ministry inspectors, it concluded. Wam
 

New contract for housemaid, domestic helpers from june 1st 2014 in UAE

The Ministry of Interior (MoI) has amended the domestic helpers’ contract form, which will be effective today.

The Naturalization, Residency and Ports Sector at the MoI finished preparing the new and amended domestic helpers contract form after four years of implementation.

Major-General Khalifa Hareb Al Khaili, Acting Assistant Undersecretary of the Ministry of the Interior for Naturalization, Residency and Ports Affairs, said, “The new contract shall enter into force once ratified as of June 1, 2014, without the need for any procedures or ratifications by other authorities. It will be available for all via the electronic services system (E-service).”

“The new contract takes into account the different changes and aims to regulate relations between domestic workers and their employers. It is also the only reference adopted in determining the obligations of both parties to the contract, based on the provisions of the law,” said Maj-Gen Al Khaili.

Ratifying the new contract form falls within the jurisdiction of the Residency and Foreigners Affairs Departments, he added.

Maj-Gen Al Khaili said the contract form was amended and updated following assessment of the contract’s implementation phase during the past period.

He stressed that the updated version of the contract represents one of the many measures that the Ministry of Interior is reviewing, with a view to addressing the issues witnessed during the past period of implementation regarding domestic helpers. “This regulatory action fulfills the Ministry of Interior’s strategic goals and vision 2014-2016,” said Maj-Gen Al Khaili

Polio vaccination mandatory for Pakistanis flying abroad from June 1

Pakistan’s health ministry has made it mandatory to have polio vaccination certificate from June 1, 2014, for those Pakistanis flying out to the UAE and other countries around the world.

The authority has sent out a circular whereby all the airports across the country will be equipped with special counters for polio vaccination for people of all ages and fields.

The World Health Organisation earlier this month issued an alert for nationals of Pakistan, Syria and Cameroon to have polio vaccination certificates prior to flying abroad in order to control the disease from spreading to other countries.

WHO said residents and long-term visitors going departing from Pakistan and Syria to receive a dose of OPV or IPV 4 weeks to 12 months prior to international travel; while those undertaking urgent travel (within 4 weeks) should be encouraged to receive a dose at least by the time of departure.

The global body said these measure are temporary but will remain in place 6 months after no new polio cases has been detected; but the travel restriction could extend to 12 months if no documentation of eradication measures have been taken.

In Pakistan, the government will set up special counters for polio vaccination at the federal and provincial hospitals across the country for people flying overseas. The federal government will supply polio vaccination certificates to the provincial governments and they’ll distribute in the hospitals.

Vaccination is mandatory for people of all ages even for the pregnant women, according to the statement issued by the country’s health authorities. It said there shouldn’t be any concern about taking oral polio vaccination for pregnant women as it’s not harmful during pregnancy.

All members of the National Assembly have been asked to monitor and ensure proper administration of the polio vaccination in their constituencies.

Pakistan’s Minister of State for National Health Services, Regulation and Coordination Saira Afzal Tarrar affirmed that the government will ensure elimination of polio from the country and urged all parties and community members to come forward and help in this national cause.

Some of the ministers have demanded penalties for those parents who don’t follow the instruction to administer polio vaccination.

The extension of ban for employment visas to expatriates came into effect from May 4, 2014 in Oman

MUSCAT — The Royal Oman Police (ROP), in coordination with other authorities concerned, has decided not to issue employment visas for expatriates, who have previously worked in the Sultanate and not completed two years from the date of last departure after leaving a company.
Announcing this, the ROP said this is in accordance with the requirements of the expatriates Residency Law and will be implemented from July 1, 2014.
Last month, the Ministry of Manpower extended by another six months a ban on employing expatriate construction workers and housekeeping staff in the private sector.
The extension of the ban came into effect from May 4, 2014, continuing a six-month ban which was due to expire on May 1.
The ban has been extended after reviewing the needs of the expat labour market and the decision is based on recommendations from the Committee of Sectoral and Contractors Association, which appealed to the ministries concerned to regulate the labour market.
The small and medium enterprises (SMEs) are exempted from the ban. This has been done in agreement between the ministry and the Public Authority for the Development of Small and Medium Enterprises.
It is worth mentioning that recently Oman has decided to limit the proportion of expatriates working in the private sector from 39 per cent to 33 per cent and has outlined steps to increase the percentage of national manpower in the private sector and to rationalise the recruitment of expatriates apart from affirming its commitment to limit the level of expatriates working in the private sector.
The labour market regularisation comes in response to the demographic changes witnessed by the Sultanate’s job market.
The recent NCSI data reveals that the expatriate population rose 0.28 per cent to touch 1.7659 million by the end of February 2014, as against 1.7614 million during the previous month.
This constitutes 44.2 per cent of the country’s total population of 3.9919 million, of which 2.2260 million people or 55.8 per cent are nationals, according to the data.
Of the total 1.7659 million expatriates, 1.5345 million are employees working in various sectors and the remaining 232,000 people are their family members.
The growth of foreign workers is mainly driven by the construction sector, especially infrastructure projects.
For the expatriate population, the number of males is higher than females, with 1,448,816 males versus 318,580 females. The Governorate of Muscat recorded the highest percentage of expatriates which stood at 62 per cent of the total population of the governorate by the end of March 2014, while Omanis comprised 38 per cent of the residents. In Al Dakhiliyah the ratio of Omanis is 77 per cent compared to 23 per cent expatriates.

Mandatory seat belt for backseat passengers proposed in UAE

The Federal Traffic Council (FTC) proposed in its latest meeting that passengers in a vehicle’s back seat must fasten their seat belts and those who don’t will be considered offenders and will be issued fines.

Maj Gen Mohammad Said Al Zafein, Assistant to the Dubai Police Chief for Operations’ Affairs and Chairman of the Federal Traffic Council, said violators will be fined Dh400 and given four black points.

He explained that the council took the age and height of the passenger into consideration, as well as the view of the policeman, when drafting the proposal which has yet to become law.

Injuries are more severe in accidents where seat belts were not used, Maj Gen Al Zafein said, which is why the Ministry of Interior puts a lot of emphasis on the importance of seat belts.
Maj Gen Al Zafein said international scientific studies have confirmed the role of the seat belt in saving many lives, as they prevent the person from hitting the steering wheel or the dashboard or flying through the windshield due to inertia when the car stops suddenly.

He said studies also showed that the risk of death of a passenger in the front seat with their seat belt on increases if a passenger in the backseat is not wearing their seat belt and vice versa.

“When an accident happens, the car stops but the passengers’ bodies continue to move forward at the same speed that the vehicle was moving. If the vehicle was at 100 km/h before the accident, the passenger will be hurled with a force between 1,000kg-1,500kg if not wearing a seat belt, which can cause death or injury to himself as well as other passengers in the vehicle.”

Last month the FTC announced that they had proposed a new law to fine drivers or their passengers if they put any part of their body out of the vehicle when the vehicle is in motion, as well as a law to punish drivers preoccupied with matters other than driving.

No hike in minimum salary for family visa in Dubai

The news in some English language newspapers claiming an increase in the minimum salary requirement for sponsoring family members, has been denied by Major General Mohammed Ahmad Al Marri, the Director of General of the Directorate of Residency and Foreigners Affairs (GDRFA) in Dubai.

He assured in a press statement that there are not any new restrictions and the directorates and all its branches are still receiving and processing applications smoothly.

Any amendments of the rules should have been issued officially in a statement by the Ministry of Interior prior to implementation in Dubai and the rest of the emirates at the same time, he clarified.

He stressed the importance of getting news from official and credible sources to foster professionalism that local newspapers enjoy.

“Our departments are characterized with high level of transparency in every matter that concerns clients. And, this is our methodology and approach in the General Directorate of Residency and Foreigners Affairs in Dubai,” he added.

Conditons for sponsorship

Article No. 31 regarding sponsorship of the wife by an expatriate husband sets the following conditions:

1.    The sponsor should have a valid work/ residence visa.

2.    He should submit a marriage contract attested as per the rules in his home country and the consulate that represents his country overseas or by the embassy of the country that had issued the marriage contract in the country in addition to  attestation by the Ministry of Foreign Affairs.

3.    The monthly income of the sponsor should not be less than Dh3,000 plus accommodation offered by the employer and Dh4,000 without accommodation.

4.    The sponsor should submit a salary certificate attested by the authorities concerned.

5.   The same rules are applicable for expatriate women ‘specialist’ employees seeking to sponsor their family members.

6.   The following categories are exempted from the salary provision and they can sponsor only their family members:

Teachers

Mosque imams

Drivers of school, college and university buses.

Heads of families can sponsor unmarried daughters and sons below 18 years or those studying in colleges and universities in the UAE..    

Universities and colleges can sponsor their students provided:

1.    The student should register for regular study and not affiliation.

2.   The sponsoring educational institution should undertake responsibility about the student’s sponsorship and his exit from the UAE after finishing his studies. The institution should also inform the authorities when the student finishes studies or leaves the country.

3. Government departments and authorities should directly apply to obtain sponsorship for foreigners who are offered training provided.

a)    The department should be a public entity.

b)    The trainee should have deputed by an official entity in his home country.     

c)    The department that offers the training should comply with its responsibility of the departure of the sponsored person after finishing training and cancellation of his residency visa.

The increase in the minimum salary limit from Dh4,000 to Dh10,000 per month to sponsor immediate family members only applies to Dubai

The increase in the minimum salary limit from Dh4,000 to Dh10,000 per month to sponsor immediate family members only applies to Dubai, an immigration official told Gulf News on Saturday.

The salary requirement to sponsor wives and children in Abu Dhabi and other emirates has not changed and remains at Dh4,000 per month or Dh3,000 with accommodation, a senior official at the General Directorate of Residency and Foreigners Affairs (GDRFA), said on condition of anonymity.

The official confirmed that the Dh6,000 increase in the minimum salary requirement was implemented in Dubai more than a week ago. The move aims to ensure that Dubai residents can provide a good quality of life to their families considering the increasing cost of living in the city.

However, the official website of GDRFA did not show any change in the rule. When contacted, the customer service agent at the GDFRA toll-free Amer service said he was not aware of any change in the minimum salary limit. According to him, the salary limit for an expatriate to sponsor family remained at Dh4,000 or Dh3,000 with accommodation.

Hiring illegal maids Violators in UAE could face jail sentence and fines up to Dh100,000

In a bid to crackdown on offenders who hire house help illegally, Ministry of Interior officials may conduct random checks within residential communities in Dubai to tackle the problem.
In a circular distributed to residents in its communities, master developer Emaar Properties has warned residents to be wary of hiring maids, gardeners and drivers through illegal ways.
“Don’t break the law by hiring illegal household staff,” reads a circular issued by the community management arm of the developer.
The company has advised its residents that the UAE’s Ministry of Interior will be “conducting random checks within the community and should they find persons working illegally in your home (e.g. housemaids, gardeners, drivers etc.), you could face a jail sentence and substantial fines ranging between Dh50,000 and Dh100,000.”
Residents have been advised to only keep staff members who are under their sponsorship or hired through a professional household service company.
As the city grows and expats and new professionals arrive each day, the housekeeping market is flourishing in Dubai. Hiring illegally can be a cheaper option but one that is very risky and can put your family in danger. Dubai Police have repeatedly cautioned residents against hiring cheap but dangerous labour, saying this can make them vulnerable to crime, especially if they have small children to be taken care of.
Despite repeated warnings by the authorities, some households are still found using the services of maids and drivers who are not hired as per the law. To step up security and to make it difficult for such ‘freelance workers’ to get access into the communities, the property developer has asked residents to register their staff with the community security after which they will be issued an ID card.

Drinking water without EQM mark not to be allowed in UAE from October 1 20014

The UAE’s mandatory technical regulation for drinking water will take effect on October 1, Dr Rashid Ahmed bin Fahad, Minister of Environment and Water, and Chairman of Emirates Standardization Metrology Authority (Esma), announced on Sunday.

The minister made it clear that any drinking water products which don't comply with the UAE Scheme for Drinking Water, approved by the UAE cabinet, and don't carry the Emirates Quality Mark (conformity mark recognised by Esma) will not be allowed into the market.

The new mechanism, he emphasized, is part of Esma's strategy to regulate and monitor products which have direct impact on health, safety of the consumer and the environment and to promote knowledge-based, competitive economy, sustainable environment and integrated infrastructure.

The minister explained that Esma board  had decided to grant an additional six months till October instead of April 1  for the enforcement of the system in response to requests by water producers and suppliers to allow them distribute their stock of drinking water and other imported products which don't carry the Emirates Quality Mark (EQM) in local market.

The new comprehensive control system aims to improve water standards in terms of quality by unifying control mechanisms on drinking water which include production, processing, packaging and distribution.

Bin Fahad told a forum, organised by Esma for 150 producers, suppliers and bottlers of drinking water and associated products, the grace period was granted to avoid any shortage of bottled water supply in the local market and spare these companies any financial loss.

''The UAE Scheme for Drinking Water, prepared by Esma in partnership with other public and private stakeholders on par with international best practices, defines the technical standard requirements for drinking water, and effective control and monitoring mechanisms regarding production, import and distribution processes,'' the minister said.

The minister noted that 154 companies had registered with the system (98 in 2013 and 56 since the beginning of 2014) of which 93 were local companies accounting for 60.4 per cent of the total companies.

He added that eight out of 14 companies applied for the Emirates Quality Mark had been awarded the registration certificates. The remaining 6 were on the final processes of auditing and conformity assessment.

UAE money launderers face 10 years jail and Dh500,000 fine

Abu Dhabi: New rules to strengthen the fight against money laundering are being discussed by the Federal National Council’s financial committee, said Ali Eisa Al Nuaimi, a member from Ajman on Sunday.

Al Nuaimi, also a rapporteur of the panel, told Gulf News, the rules are meant to further protect the integrity of the UAE’s financial system in keeping with the International Standards on Combating Money Laundering and the Financing of Terrorism and Proliferation — the FATF Recommendations.

The FATF Standards were revised in 2012 to strengthen global safeguards and provide governments with stronger tools to take action against financial crime.

“Protection will be provided to witnesses who testify against suspected criminals in organized gang crimes that include terrorism, money laundering, trafficking in drugs and humans and the big fraud cases,” Al Nuaimi said.
Under the new rules, anyone contravening the law may face up to ten years in prison, a fine of up to Dh500,000 or both. In the case of a business, the penalty is a fine ranging between Dh300,000 and Dh1 million. Also, the proceeds of any money-laundering activity are confiscated.

Board members, managers and staff of financial businesses who fail to report any money laundering transaction or terrorist financing will face a jail term of up to three years, a fine of up to Dh300,000 or both.

Tipping money laundering suspects about any financial review or action taken by the authorities will be punished with a jail term of up to a year, a fine of up to Dh100,000 or both.

Failure to declare any controlled substance or amounts to be determined by the authorities will be punished with a jail term, a fine or both.

Al Nuaimi said the law will be enforced with immediate effect from the date of being published in the official gazette.
The act of money-laundering was criminalised in 2002 pursuant to Federal Law no 4 regarding Criminalisation of Money Laundering, applicable to individuals and financial, trading and economic businesses operating in the UAE, including those located in the free zones.
Huge tax losses
With an estimated turnover of €600 billion (Dh3,020 billion) per year, money laundering causes huge tax losses in EU countries.

The Central Bank requires that banks and financial entities report any transactions carried out by customers, which they suspect may be related to illegal dealings, and may consequently be related to money laundering or financing of terrorism.

These banks and financial institutions are also required to verify the identity of their clients at all times, to maintain documents relating to the identities of customers for at least five years and to take note of any transaction which is not compatible with the income of its owner, and which does not seem to have any reasonable economic cause or clear legal objective. Such requirements also include monitoring all letters of credit which are opened.

The Central Bank has the power to impose sanctions, including the power to revoke an institution’s license, should a financial institution fail to comply with the rules.

There have been a number of multilateral meetings between UAE representatives and their counterparts in other countries to discuss means by which to collectively combat money laundering. For instance, UAE representatives met with their counterparts from the United States, Russia and Japan, among others, at the 3rd plenary meeting of the Financial Action Task Force in June 2012 to discuss exchanging information on the suspected financial flows into each other’s countries.

Hassle-free travel with gold jewellery to India

Indian expats can easily travel in and out of India with gold jewellery if they follow due procedure, the Indian Consulate in Dubai has clarified.

In recent months, Indian expats have been increasingly complaining about ‘harassment’ by customs officials at Indian airports, saying they are forced to pay heavy duties or asked to leave the jewellery behind in lockers.

Under Indian Customs rules, Non Resident Indians must specifically declare gold bullion and gold jewellery exceeding the free allowance, which is capped at Rs50,000 (Dh3,125) for men and Rs100,000 (Dh6,250) for women.

But Indian women, who traditionally wear gold jewellery and visit India frequently for weddings and other occasions, say the allowance is too low. While some still manage to easily pass through customs, others say they are targeted even if they have small quantities of ornaments on them. They claim there is little clarity on what kind of jewellery is dutiable, where and how it must be declared and whether the duty is charged at every entry.

A senior consul at the Indian Consulate told  there is no room for ambiguity. “The rules are simple and clearly defined in the Central Board of Excise and Customs’ Travellers Guide which is freely available online.”

He said that duty is chargeable (at about 10 per cent) only on gold jewellery purchased outside India and if it exceeds the free allowance.

He said all gold jewellery bought in India is exempt from duty if the passenger exiting the home country duly declares it and secures an export certificate at the airport customs desk.

“Once you have this export certificate for a piece of jewellery, you can bring it in or take it out any number of times without any hassle.”

He said the export certificate contains information like the passenger’s name, passport number and details of the gold like weight, description etc.

He said although customs officials at the airports do a valuation of the gold and issue the certificate on the spot, passengers are encouraged to approach them a day or two in advance to ease the rush. They can also present purchase invoices or external valuation certificates issued by government-approved jewellers to obtain the export certificate.

But what if an expat passenger from the UAE is travelling to India with undeclared jewellery bought in India earlier?

“This can be a grey area as you would need to prove to customs authorities that you have indeed purchased the gold in India,” said the consul.

He said free allowance is applicable only to pure gold jewellery. “Jewellery studded with stones does not qualify for free allowance.”

He said: “Bullion up to 1kg per person can be imported into India by paying duty of around 10 per cent. In recent days, officials have been asking for the individual’s documents, source of purchase etc to ensure he/she is not a carrier for others.”
Rate of Duty (CBEC Traveller’s Guide)
Gold bars, other than tola bars, bearing manufacturer or refiner’s engraved serial number and weight expressed in metric units or gold coins: 
6 % Advalorem + 3 % cess


Gold in any other form, including tola bars and ornaments, but excluding ornaments with studded stones 
or pearls : 
10 % Advalorem + 3 % cess

Licence made mandatory soon for teaching in UAE classrooms

Soon teachers will not be permitted to teach in UAE classrooms unless they have a licence, the Undersecretary of the Ministry of Education said Tuesday during Youm Al Wafa’a (Loyalty Day).

“To be permitted to teach in the UAE, teachers will have to have a federal licence that ensures a unified system and teaching standards in schools,” said Marwan Al Sawaleh, Undersecretary at the ministry.

Al Sawaleh said the cabinet ordered the ministry to submit all the suggested procedures and legislations by the end of this year. Once approved and implemented the licence will be required by all teachers in the UAE.

“After the approval the federal licence system will be introduced in phases, to include all teachers under a unified system.”Al Sawaleh made the statement on the sidelines of Youm Al Wafa’a, an annual award ceremony organised by the ministry to honour educational and media supporters as well as retired ministry employees.

UAE may soon approve new companies law: Minister

The UAE is soon expected to approve a long-awaited new law covering the operations of companies in the country, a step towards attracting fresh foreign investment, the economy minister said on Monday.

"The companies law is with the government to be ratified by the President His Highness Sheikh Khalifa bin Zayed Al Nahyan - we are expecting that soon," Sultan bin Saeed Al Mansouri, Minister of Economy, told reporters.

The new law, which has been years in the making, contains dozens of articles seeking to make limited liability and joint stock companies simpler to manage and more attractive to investors, while strengthening corporate governance in areas such as companies making loans to their directors.

The law would provide for companies’ documentation to be made publicly available, a step towards a more transparent corporate environment in the UAE.

One article, contained in a version of the law given preliminary approval last year, would reduce the minimum free float in initial public offers of shares to 30 per cent from 55 per cent, the ratio which currently applies on the UAE's two main stock exchanges.

The minimum ratio deters some corporate founders who want to maintain majority ownership, and has been criticised as one factor encouraging UAE companies to list their shares in overseas markets such as London rather than domestically. Officials have not confirmed that the article lowering the ratio will be included in the final version.

The law will certainly be less radical than some investors had hoped; last year the consultative Federal National Council rejected an article that would have eased tight controls on foreign ownership of companies, citing security fears and threats to local businesses.

The article would have given the UAE cabinet the power to let foreign parties own stakes of up to 100 per cent in companies outside free zones. Currently, foreigners can generally hold stakes of up to 49 per cent in businesses located outside free zones.

Last year, the economy minister said the article liberalising foreign ownership would be included in a draft foreign investment law. That bill has now been finalised by a ministerial legal committee and is awaiting approval of the FNC, Mansouri said on Monday.

Meanwhile, a law on small and medium-sized enterprises, which the cabinet hopes will boost the growth of SMEs and encourage UAE citizens to establish companies, is on its way, Mansouri said: "The SMEs law has been ratified by the President. That should be out soon."

The law is expected to include provisions encouraging government agencies to provide support to SMEs.

The UAE expects to attract € 8.6 billion ($11.9 billion; Dh43.67bn) in foreign direct investment into its non-oil sector in 2014, 20 per cent more than last year, Mansouri said.

The second biggest Arab economy is investing billions of dollars in industry, tourism, real estate and infrastructure to wean its economy off its reliance on oil exports.

Emirates ID Card to include traffic details-Federal Traffic Council

The Federal Traffic Council has recommended unifying drivers' traffic file information and linking it to the Emirates ID card so that it takes the same ID number. This is in a bid to make it easy for customers to complete their transactions in any one of the emirates in the country.

Major General Mohammed Saif Al Zafeen, Head of the Federal Traffic Council and Deputy Chief Commander for Operational Affairs at Dubai Police,  said that the council has finalised drafts of the recommendations related to traffic law and is expecting suggestions on the possibility of adding new texts that are commensurate with the developments and requirements of traffic security.

Al Zafeen added that the council has issued a set of recommendations to be submitted to the higher committee for policies and strategies headed by Lt. General Sheikh Saif bin Zayed Al Nahyan, Deputy Prime Minister and Minister of the Interior, to take the final relative decision, noting that Sheikh Saif has given clear directives for unifying traffic related procedures in all the emirates, aiming to eliminate any deficiencies or differences in regulations or application.

He pointed out that members of the council and directors of traffic departments in the country have unanimously approved these recommendations. Mechanisms to implement the recommendations will be coordinated with the relevant authorities in each emirate, he added.

Law No 26 of 2007 issued to regulate eviction of tenants,Landlords can evict tenants to reconstruct property or recover it for personal use

Articles 25 (2) and 26 of Dubai Law No 26 of 2007 which regulate the relationship between landlords and tenants in the emirate of Dubai state that landlords may demand eviction of tenants prior to expiry of tenancy period in the following cases:

Article 25 (2): Landlord may demand eviction of tenant upon expiry of tenancy contract in the following cases: a.If development requirements in the emirate requires demolition and reconstruction of the property in accordance with government authorities’ instructions

b. If the property requires renovation or comprehensive maintenance which cannot be executed while tenant occupies the property, provided that a technical report attested by Dubai Municipality is submitted to this effect.

c.If landlord wishes to demolish the property for reconstruction or to add new constructions that prevent tenant from benefiting from the leased property, provided that necessary licences are obtained.

d. If landlord wishes to recover the property for use by him personally or by his children.

Article (26): If, upon expiry of the tenancy period, the landlord demands recovery of the property for his own use, or use by his children, and the committee approves the same, then the landlord shall not rent the property to others before one year from date of recovery of the property, otherwise the tenant shall have the right to request the committee to order proper compensation to him.