Dubai announces new financial misconduct laws with travel bans, asset freezing for violators

In the new law, the Director General of the Financial Audit Authority has been granted authority to take several actions against employees to address misconduct.

Dubai on Wednesday, October 30, introduced new laws for financial misconduct and auditing, including travel bans and asset-freezing for offending employees.

Sheikh Mohammed bin Rashid Al Maktoum, Dubai’s Vice President, Prime Minister, and Ruler, has issued Law No. (24) of 2024, amending certain provisions of 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 updates guidelines.

In the new law, the Director General of the Financial Audit Authority has been granted authority to take several actions against employees to address misconduct. These include suspending them, confiscating relevant documents, or dismissing investigations if they are unfounded or lack evidence, the Dubai Media Office (DMO) reported.

Minor violations can be resolved through disciplinary actions, while criminal offenses must be reported to the Dubai Public Prosecution. Furthermore, travel bans and asset freezes can last up to three months, with extensions available.

Appeals can be made after three months, unless there’s a valid reason. A settlement can be reached if misappropriated funds and profits are recovered, closing the investigation without prosecution.

The authority can assess the appropriateness of disciplinary penalties for employees, with deciding if stricter penalties are necessary, and non-compliance referred to the Central Violations Committee.

The amended Article (35) establishes an independent Central Violations Committee, composed of three members appointed by the Authority’s Director-General, to review penalties and address violations by senior officials, with 15-day appeals.

The Financial Audit Authority will establish a permanent ‘Grievances Committee’, appointed by the Director-General, consisting of a chairperson, government CEO, and representatives from the Authority and Supreme Legislation Committee.

The committee reviews grievances from employees and officials facing disciplinary penalties, addressing objections, and defining procedures. Decisions are final, with appellants seeking judicial recourse.

The new law will be published in the Official Gazette and will take effect from its issuance date.

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