Dubai Enhances Penalties for Financial Misconduct in Audit Authority

Dubai has introduced a new law strengthening penalties for financial misconduct, specifically targeting employees of the Financial Audit Authority. Announced by Dubai’s Ruler, the amendment grants the Director General of the Authority enhanced powers to handle employee violations, including measures such as travel bans, asset freezes, and disciplinary actions.

 

The updated law enables the Director General to suspend offending employees, seize relevant documents, or, if violations are minor or unsubstantiated, dismiss cases without further action. Serious criminal offences, however, will be referred to Dubai Public Prosecution, with asset freezes and travel restrictions enforceable for up to three months, extendable as needed. Employees have the right to appeal these measures after the initial three-month period, unless an earlier appeal is justified.

 

The amendment, issued under Law No. (24) of 2024, revises previous regulations (Law No. (4) of 2018) by modifying articles 34, 35, and 36. It allows settlements where misappropriated funds are recovered, concluding the investigation without criminal prosecution but permitting disciplinary actions.

Additionally, a structured process for appeals has been established. The Director General will evaluate penalties, adjusting them, if necessary, with final approval sent to the authority within seven days. Non-compliance with penalty revisions by senior officials will lead to referral to the newly established Central Violations Committee. This three-member independent committee can uphold, increase, or dismiss penalties based on evidence, with employees able to appeal decisions through a Grievances Committee within 15 days.

 

The permanent Grievances Committee, appointed by the Director General, will include a chairperson, a CEO from a government entity, and representatives from the authority and Supreme Legislation Committee. This committee’s decisions are final, with judicial review as the only recourse.

The law takes effect immediately and will be published in the Official Gazette.

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