Mandating Nominee Details in UAE: A Necessary Reform for Expats and Their Families

Mandating Nominee Details in UAE: A Necessary Reform for Expats and Their Families

Introduction

The United Arab Emirates (UAE) is home to over 9 million expatriates, many of whom hold significant assets, including bank accounts, stocks, crypto assets, real estate, cars, number plates, insurance policies, and SIM-based financial services. However, the absence of mandated nominee registration across these sectors creates legal and financial challenges for dependents when an asset holder passes away.

A 2023 UAE Central Bank report highlighted that over AED 2 billion in unclaimed assets remain frozen due to unclear inheritance laws and the absence of nominee details. Given that 70% of UAE’s population are expats, the need for a legally enforced nominee system is crucial.

The Urgent Need for a Nominee Mandate

1. Current Challenges Faced by Expats' Families

- Lack of Awareness & Oversight: Many expats do not register nominees for their assets due to lack of knowledge.

- Frozen Assets: Upon an asset holder’s demise, banks immediately freeze accounts, requiring heirs to navigate lengthy legal processes.

- Sharia Law Implications: In the absence of a will, inheritance follows Sharia law, which may conflict with an expat's wishes.

- Lack of Centralized Tracking: There is no official government mechanism to notify families about a deceased person’s financial holdings.

2. Illustrative Scenarios Demonstrating Challenges

?? Case 1 – Bank Account Freeze: A British expat in Dubai passed away suddenly in 2022, leaving behind AED 1.5 million in his UAE bank account. His wife, living in the UK, was unaware of the account details and was unable to claim the funds. The legal process took over two years, involving multiple court proceedings.

?? Case 2 – Crypto & Digital Assets Lost: An Indian expat invested AED 500,000 in Bitcoin and stocks but never shared access details with his family. After his unexpected death, his assets remained completely inaccessible, as crypto exchanges require legal documentation for access, which his family could not provide.

?? Case 3 – Real Estate Ownership Issues: An Australian expat owned property in Dubai but never registered a nominee. His children, unfamiliar with UAE laws, struggled to prove ownership and inheritance rights, leading to prolonged litigation.

The above scenarios are for illustrative purposes only and do not represent verified legal cases. They highlight potential complexities expats may face in the absence of nominee registrations. Key Sectors Where Nominee Registration Must Be Mandatory

1. UAE Residence Visa & Immigration

Mandate nominee registration at visa issuance to ensure dependents are legally recognized. This would prevent financial and legal hurdles in unforeseen circumstances.

2. Banking & Financial Institutions

ADGM, DIFC, VARA should enforce nominee details for:

- Stock trading platforms (e.g., eToro, Plus500)

- Crypto exchanges (e.g., Binance, BitMart, Crypto.com)

- Bank accounts & investment funds

Regular nominee updates should be mandatory, similar to KYC (Know Your Customer) procedures.

3. Telecommunication Services (Prepaid & Postpaid SIMs)

Telecom operators (Etisalat, du, Virgin Mobile) should mandate nominee details, as SIM-linked e-wallets, banking, and stock trading apps depend on mobile numbers.

Dependents often struggle to reset passwords without access to the registered number.

4. Real Estate & Property (Dubai Land Department - DLD)

Dubai Land Department (DLD) & other emirate authorities should require nominee details when issuing title deeds.

Expats should be encouraged to create wills at the time of property acquisition.

5. Investment Policies

Nominee details should be compulsory for investment-linked policies.

This ensures that dependents can access funds immediately without court procedures.

Legal & Regulatory Implications

Proposed Amendments for Effective Implementation

- UAE Cybercrime Law – Ensure data privacy & security in nominee registration for digital assets.

- UAE Personal Status Law – Clarify how nominee designations align with inheritance laws.

- Abu Dhabi Judicial Department Regulations – Address legal complexities in asset claims.

- Telecommunications and Digital Government Regulatory Authority (TDRA) – Regulate nominee requirements for SIM-based financial services.

How Expats Can Protect Their Assets Until Reforms Are Implemented

? Register a Will: Expats should draft a legally recognized will under DIFC Wills Service Centre or Abu Dhabi Judicial Department.

? Power of Attorney (POA): Issue POA to a trusted family member for financial transactions. ? Share Account Details Securely: Maintain a secure record of bank accounts, investments, login credentials of electronic devices such as iPad, iPhone, Laptop etc, login credentials of emails and apps, and asset holdings.

Conclusion: A Necessary Reform for the UAE’s Expat Community

Mandating nominee details is not optional—it is a critical reform to protect UAE expats and their families. Considering the administrative efficiencies such a system could bring, it would be beneficial for the UAE government to explore the implementation of these reforms:

?? Make nominee registration mandatory across financial, telecom, and real estate sectors.

?? Ensure periodic nominee updates just like KYC compliance.

?? Prevent unclaimed assets from being lost to the state treasury.

The UAE has established itself as one of the most progressive and expatriate-friendly nations, consistently taking commendable steps to enhance the quality of life for its nationals and residents. Expats feel truly blessed to live here. By implementing these reforms, the UAE expatriate community and their dependents can experience greater peace of mind and financial security.

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