In a significant legislative move, Dubai has unveiled a new law that establishes strict measures for investigating financial misconduct within the Financial Audit Authority.
Minor infractions may result in disciplinary measures without prosecution, while serious criminal offenses must be escalated to the Dubai Public Prosecution. Additionally, offenders could face travel bans and asset freezes lasting up to three months, with the possibility of extensions. Appeals against such measures can be filed after three months unless an earlier appeal is warranted.
Should misappropriated funds be recovered, a settlement may be reached, allowing for disciplinary actions without proceeding to prosecution. This amendment was issued by Sheikh Mohammed bin Rashid Al Maktoum, Prime Minister and Vice-President of the UAE, and Ruler of Dubai, and modifies the existing Law No. (4) of 2018 regarding the Financial Audit Authority.
The updated legislation replaces certain articles of the original law and establishes frameworks for disciplinary actions, including the right to appeal.
Appeals and Penalty Assessments
The Director General has the authority to evaluate whether penalties align with the severity of the misconduct. Penalties may be upheld or adjusted, with any new decisions communicated within a week. If compliance is not achieved, cases involving senior officials will be referred to the newly formed Central Violations Committee. This independent body, consisting of three members appointed by the Director General, can modify penalties based on presented evidence.
Employees and officials can challenge decisions made by the Central Violations Committee within 15 days, by submitting grievances to a dedicated Grievances Committee established under the new law.
This permanent committee will include a chairperson, a government entity CEO, and representatives from both the Financial Audit Authority and the Supreme Legislation Committee. The committee’s rulings are final and cannot be administratively appealed, although judicial recourse remains available.
The new law takes effect immediately and will be published in the Official Gazette.
