UAE: Dh300,000 fine for raising charity funds without permit

Other penalties include imprisonment and confiscation of the funds raised

By SM Ayaz Zakir

Published: Tue 2 Nov 2021, 7:23 PM

Last updated: Tue 2 Nov 2021, 8:27 PM

Fundraising without a permit is a punishable crime in the UAE -- one that could lead to imprisonment and a fine of up to Dh300,000.

Hessa Abdul Rahman Tahlak, assistant undersecretary of social development at the Ministry of Community Development, said: "Calling people for fundraising to assist certain humanitarian situations by any means of advertising, whether through social media or websites, is a punishable offence."

According to the UAE's Fundraising Regulatory Law, the minimum fine for raising funds without a permit is Dh150,000 and maximum is Dh300,000. Other penalties include imprisonment and confiscation of the funds raised, Tahlak said.

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Federal Law No 3 of 2021 prohibits a person from establishing, organising or performing any act with the aim of collecting or accepting fundraising amounts from the public. This is in line with the regulations and measures of the Executive Office for Combating Money Laundering and Terrorist Financing.

Authorities have conducted 2,400 evaluations and inspections from the beginning of 2019 until the end of last October. Several violators were penalised and given administrative fines.

The Ministry of Community Development emphasised that authorised entities must first obtain a fundraising permit from competent authorities, as per the Fundraising Regulatory Law. Moreover, the collection process should be carried out only through charity associations.

Local authorities and the ministry are responsible for overseeing and controlling non-profit organisations and NGOs by conducting field visits to ensure that these entities are complying with the provisions of the law, Tahlak said.

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Hamed Al Zaabi, director of the Executive Office for Combating Money Laundering and Terrorist Financing, said all members of the society should abide by the laws to help combat money laundering and terrorist financing in the UAE.

“The main goal of the laws and regulations applied in the UAE are to protect fundraisers and protect their funds from the risks of exploitation in financing terrorism and illegal organisations,” he said.

ayaz@khaleejtimes.com