Travel ban, asset freeze: Dubai amends law, penalties for financial misconduct by some employees

The new amendment changes provisions of the law on the establishment of the Financial Audit Authority

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Web Desk

Published: Wed 30 Oct 2024, 5:48 PM

Last updated: Wed 30 Oct 2024, 9:00 PM

A new law announced in Dubai on Wednesday outlines the investigation of violations as well as disciplinary penalties for offending employees of the Financial Audit Authority.

Under the law issued by the Dubai Ruler, the Director General of the Financial Audit Authority has been granted the power to take action against offending employees. These include suspending them, confiscating relevant documents, or dismissing investigations if they are unfounded or lack evidence.

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While minor violations can be dismissed with disciplinary actions instead of prosecution, criminal offences must be referred to the Dubai Public Prosecution. Further, travel bans and asset freezes can last up to three months and may be extended if necessary. Appeals can be made after three months unless there’s a valid reason to appeal sooner.

If the misappropriated funds and profits are recovered, a settlement can be reached. This would close the investigation without prosecution but still allow for disciplinary action, under the amendment issued by Sheikh Mohammed bin Rashid Al Maktoum, Prime Minister and Vice-President of UAE, and Ruler of Dubai.

The newly issued Law No. (24) of 2024 amended Law No. (4) of 2018 pertaining to the establishment of the Financial Audit Authority, replacing articles 34, 35, and 36 of the original law with new provisions.

The new amendment also creates systems in place to look at the disciplinary penalties imposed on employees, and allows for appeals.

Appealing penalties

Firstly, the Director General can assess whether penalties correspond to the gravity of the violation. The penalty can then be approved, or a stricter one requested, with the updated decision due to the authority within seven days.

If entities fail to comply with penalty adjustments and address violations by senior officials, it will then be referred to the Central Violations Committee. This independent body will be composed of three members appointed by the Authority’s Director General, created under the new law.

This committee can also uphold, increase, or dismiss penalties based on evidence. The Central Violations Committee’s decisions can also be appealed by employees and officials within 15 days by submitting a grievance to the Grievances Committee as stipulated by law.

The permanent ‘Grievances Committee’ will also be established within the Financial Audit Authority, appointed by the Authority's Director General. The committee consists of a chairperson, a CEO from a government entity, and representatives from the authority and the Supreme Legislation Committee.

Decisions made by the Grievances Committee are final and cannot be appealed administratively, but appellants may seek judicial recourse. The chairperson of the committee will define the committee's procedures and powers.

The new law is effective from the date of its issuance and will be published in the Official Gazette.

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Web Desk

Published: Wed 30 Oct 2024, 5:48 PM

Last updated: Wed 30 Oct 2024, 9:00 PM

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