New Regulations and Laws Shape Qatar’s Financial Landscape: A Look into Banking, Corporate Entities, and Anti-Money Laundering Measures
Qatar’s Changing Regulatory Landscape
Doha, QATAR – Qatar’s regulatory landscape undergoes significant changes with the enactment of new laws and regulations shaping the country’s financial sector and business environment. Here is a roundup of some key legislations in the areas of banking, corporate entities, charitable organizations, investment free zones, and anti-money laundering and terrorism financing.
Banking Sector
The Qatar Central Bank (QCB) plays a crucial role in regulating the country’s financial sector. Some of the key banking sector laws and regulations are:
- Law No. (13) of 2012 on Issuing the Law of Qatar Central Bank and the Regulation of Financial Institutions (https://www.almeezan.qa/LawPage.aspx?id=4782&language=en)
- Law No. (08) of 2012 concerning Qatar Financial Markets Authority (https://www.almeezan.qa/LawPage.aspx?id=4787&language=en)
- Law No. (07) of 2005 Qatar Financial Centre Law (https://www.almeezan.qa/LawPage.aspx?id=3987&language=en)
- Law No. (08) of 2020 regulating the profession of external auditing (https://www.almeezan.qa/LawPage.aspx?id=8274&language=en)
Additionally, the QCB has issued various instructions and circulars to support these laws, including those regarding opening accounts for individuals and companies working in free zones (QCB CIRCULAR 2019-36 and 2020-03).
Anti-Money Laundering and Terrorism Financing
Two essential pieces of legislation have been enacted to combat money laundering and terrorism financing in Qatar:
- Law No. (20) of 2019 issuing the Anti-Money Laundering and Terrorism Financing Law (https://www.almeezan.qa/LawPage.aspx?id=8085&language=en)
- Qatar Central Bank CIRCULARS 2020-17, 18, 24 outline instructions and guidance for financial institutions on risk-based approach applications, customer due diligence measures, identification of real beneficiaries, dealing with precious metals, gems, and gold merchants, and countering the financing of weapons of mass destruction proliferation.
Corporate Entities
Commercial transactions and business operations are governed by various laws to protect stakeholders’ interests and maintain a fair business environment:
- Law No. (11) of 2015 promulgating the Commercial Companies Law (https://www.almeezan.qa/LawPage.aspx?id=6656&language=en)
- Law No. (27) of 2006 Promulgating the Trading Regulation Law (https://www.almeezan.qa/LawPage.aspx?id=2572&language=en)
- Law No. (02) of 2017 issuing the arbitration law in civil and commercial matters (https://www.almeezan.qa/LawPage.aspx?id=7156&language=en)
Charitable and Non-Profit Organizations
Charitable and non-profit organizations contribute significantly to community development and nation-building in Qatar. Relevant legislations include:
- Law No. (04) of 2020 amending some provisions of Law No. (15) of 2014 regarding the regulation of charitable activities (https://almeezan.qa/Error503english.aspx?law_ID=8238&language=en)
- Law No. (15) of 2014 regulating charitable activities (https://www.almeezan.qa/LawPage.aspx?id=6367&language=en)
- Law No. (12) of 2004 on Private Associations and Foundations (https://www.almeezan.qa/LawPage.aspx?id=3956&language=en)
- Decree-Law No. (21) of 2006 Regarding Private Foundations for the Public Benefit (https://www.almeezan.qa/LawPage.aspx?id=2697&language=en)
Investment Free Zones
The Investment Free Zones Law (Law No. (34) of 2005 on Investment Free Zones) offers favorable business environments to investors and contributes to diversifying the economy. Related instructions are issued by the QCB (circles 2019-36 and 2020-03 for opening accounts).
With these new laws and regulations, Qatar aims to boost its economic growth while maintaining stability in its financial system, ensuring ethical business practices, and combatting financial crimes.