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Fortunes Business

Account Freezing in the UAE: How to Save Your Business and Avoid Banking Issues?

In recent years, entrepreneurs in the UAE have increasingly faced the issue of bank account freezing. This can happen for various reasons, including stricter financial regulations, anti-money laundering (AML) measures, or even simple documentation errors. As a result, businesses find themselves paralyzed, with limited access to their finances.

Why Do Banks Freeze Accounts in the UAE?

1. Stringent Financial Oversight

Banks in the UAE must comply with strict international standards for anti-money laundering (AML) and combating the financing of terrorism (CFT). Even minor deviations from these standards can lead to account freezes.

2. Lack of Transaction Transparency

If a bank has suspicions about the origin of funds or the purpose of transactions, it may temporarily freeze an account for further investigation.

3. Changes in Banking Policies

Many UAE banks have tightened their requirements for non-resident companies and businesses without substantial local operations, leading to mass account closures and freezes.

4. Documentation Errors

Incorrectly prepared payment instructions or inconsistencies in company or client information can result in temporary or permanent account restrictions.

Why Are Russian Citizens Facing Account Freezes?

Recently, many Russian entrepreneurs have encountered banking difficulties in the UAE. Major banks such as Emirates NBD have started freezing accounts of Russian nationals due to stricter compliance measures.
Key reasons include:
  • Pressure from the US and EU:
Western countries demand that the UAE adhere to sanctions, leading to the revocation of licenses for certain Russian banks and restrictions on transactions involving Russian clients.
  • Asset Freezing:
Many Russian investors transferred funds to the UAE, but now banks are imposing transaction limits, blocking fund withdrawals and dividend payments.
  • Enhanced Financial Monitoring:
UAE banks now require more rigorous proof of fund sources, making it increasingly difficult for Russian entrepreneurs to conduct business.

How to Protect Your Business? Oman – A Reliable Alternative

If your account in the UAE has been frozen and the situation is critical, relocating your business to a jurisdiction with more flexible conditions might be the best solution.
Oman offers significant advantages for entrepreneurs:

1. Complete Tax Exemption

Unlike the UAE, Oman does not impose corporate tax, VAT, or dividend tax. However, to qualify for tax benefits, companies must go through a formal verification process. Our experts can assist in structuring your business correctly to take full advantage of Oman's tax regime.

2. Easier Bank Account Opening

Omani banks are more welcoming to foreign entrepreneurs, with a low risk of account freezes compared to the UAE.

3. Stable Economic and Legal Environment

Oman actively attracts investors and provides business-friendly policies. Unlike the UAE, where financial regulations are tightening, Oman maintains a flexible and investor-friendly approach.

4. Unrestricted International Business Operations

Omani companies can conduct business worldwide without the limitations imposed by UAE banking policies.

How to Open a Company in Oman: Step-by-Step Guide

1. Choose the Right Business Structure

1. Choose the Right Business Structure
Depending on your business activity, you can register an LLC in a free zone or an International Financial Company (IFC).

2. Prepare the Required Documents
You'll need a passport, proof of address, business plan, and incorporation documents.

3. Complete the Registration Process
Company registration in Oman typically takes up to two weeks.

4. Open a Bank Account
New businesses in Oman can open bank accounts within just one day.

For more details on each step, check out our comprehensive guide on starting a business in Oman.
If your business is facing challenges in the UAE and the banking system is no longer reliable, Oman provides a solid alternative. Here, you can enjoy financial stability, tax-free business operations, and long-term security.

📌 Want to learn more? Contact our experts—we’ll help you register your business in Oman quickly and hassle-free!
2025-02-05 19:34 Blog