Anti-Corruption 2024 Comparisons

As part of the UAE’s commitment to creating and maintaining a strong anti-bribery and anti-corruption environment, the country is party to the United Nations Convention Against Corruption (UNCAC). The UAE ratified the UNCAC in 2006 under Federal Decree No 8/2006. The UNCAC is a legally binding universal anti-corruption instrument, covering areas including prevention measures, international co-operation, technical assistance and the exchange of information, criminalisation and enforcement, and the recovery of assets. The UNCAC has been signed by 140 countries, including the UAE, making it the largest multi-national anti-corruption regime in the world.

The UAE has also been a party to the Arab Anti-Corruption Convention (AACC) since December 2010. The AACC is a key regional anti-corruption instrument based on the principles of Islamic Sharia law, treaties and conventions concerning judicial and security co-operation, and specifically the UNCAC. An important feature of the AACC is the recognition that fighting corruption requires the efforts of individuals and civil society organisations, rather than being limited to governments alone (Preamble to the AACC). This understanding is reflected in Article 2 of the AACC, which declares the convention’s aims, reproduced below.

• “Foster measures to prevent, fight and uncover all forms of corruption and other offences related to its commission, and the prosecution of its perpetrators.
• Foster integrity, transparency, accountability and the rule of law.
• Encourage individuals and civil society organizations to take an active part in preventing and fighting corruption.”

The AACC sets a framework for signatory states, including the UAE, to implement domestically, on issues including:

• criminalisation (Article 4);
• freezing and confiscation of assets (Article 7);
• preventative measures (Article 10);
• protection of whistle-blowers (Article 14);
• cooperation in respect of law enforcement (Article 16), national authorities (Article 18), and judicial assistance (Article 20);
• asset recovery (Articles 27 and 30); and
• collection, analysis, and exchange of corruption-related data (Article 32).

Federal

The UAE does not have a standalone national law governing bribery and corruption in the country. Instead, the UAE’s anti-bribery and anti-corruption regime is spread across multiple federal and emirate-level laws and regulations. In addition to Federal Decree No 8/2006, mentioned in 1.1 International Conventions, the UAE’s primary federal anti-corruption rules are contained in:

• Federal Decree-Law No 31/2021 Promulgating the Crimes and Penalties Law (the “UAE Penal Code”);
• Federal Decree-Law No 49/2022 on Human Resources in the Federal Government (the “UAE HR Law”);
• Federal Decree-Law No 20/2018 on Anti-Money Laundering, Combating the Financing of Terrorism and Financing of Illegal Organisations as amended (the “UAE AML Law”); and
• Federal Decree-Law No 32/2021 on Commercial Companies (the “UAE Companies Law”).

Emirate-Level

The primary emirate-level anti-corruption laws applicable in Dubai are contained in:

• Dubai Law No 1/1970 as amended (the “Dubai Penal Code”);
• Dubai Law No 37/2009 on Procedures for the Recovery of Illegally Obtained Public and Private Funds (the “Dubai Law on Illegally Obtained Funds”);
• Dubai Law No 4/2016 on the Dubai Economic Security Center;
• Dubai Law No 4/2018 Establishing the Financial Audit Authority (FAA); and
• Dubai Law No 8/2018 Concerning Human Resources Management Law for the Government of Dubai (the “Dubai Government HR Law”).

The main emirate-level anti-corruption laws applicable in Abu Dhabi are contained in:

• Abu Dhabi Law No 1/1970 as amended (the “Abu Dhabi Penal Code”);
• Abu Dhabi Law No 6/2016 Concerning Human Resources in the Emirate of Abu Dhabi (the “Abu Dhabi Government HR Law”);
• Abu Dhabi Law No 19/2020 on the Reorganisation of Abu Dhabi Accountability Authority; and
• ADAA Chairman’s Resolution No 34/2021 Issuing Anti-Corruption Procedures Regulations.

The UAE’s emirate-level anti-bribery and anti-corruption laws and regulations are likely to be used to fill gaps in the applicable federal legislation, such as where an emirate-level law provides for a particular offence that the UAE Penal Code does not. For example, provisions of the Dubai Penal Code that contravened Federal Law No 3/1987 (the Old Federal Penal Code) were abrogated under Article 1 of Dubai Law No 4/1994 on the Local Penal Law of 1970. Although the Old Federal Penal Code has been replaced by the UAE Penal Code, the Dubai Penal Code remains in effect and continues to govern any offences not provided for under the UAE Penal Code. In addition, federal and emirate-level laws may apply different different thresholds or requirements in respect of the same offence. Where this is the case, it is possible that either set of thresholds or requirements may be applied in practice. For example, certain bribery offences under the UAE Penal Code may include an intent requirement that is not required for the same offences under the Dubai Penal Code. In this example, it is possible that the stricter threshold under the Dubai Penal Code may be applied.

Free Zones

The UAE’s various free zones, including the Dubai International Financial Centre (DIFC) and the Abu Dhabi Global Market (ADGM), also have their own laws and regulations, which apply in addition to the UAE’s federal laws. This includes DIFC Law No 5/2018 as amended (the “DIFC Companies Law”) and the ADGM’s AML Rulebook.

Enforcement of the UAE’s anti-bribery and anti-corruption laws is necessarily spread across federal and emirate-level authorities by virtue of the underlying regime. Consequently, the UAE does not have a unified set of interpretation and enforcement guidelines in respect of its national anti-corruption legislation. In addition to the provisions of the UAE Penal Code, which sets out several relevant offences, public officials and private sector entities can also find relevant laws and guidance from other sources.

The UAE Companies Law, for example, provides the following rules in respect of the management of public joint stock companies:

• such companies entering into deals with related parties must provide a statement to the Securities and Commodities Authority (SCA) with information about the related party and how it will potentially benefit from the deal, and the details of the deal itself (Article 152);
• a related party entering into a deal with such a company must provide a written confirmation that the deal is fair, reasonable, and to the benefit of the company’s shareholders (Article 152);
• loans and guarantees in favour of such a company’s directors are prohibited and the prohibition extends to the directors’ spouses, children, and relatives up to the second degree (Article 153);
• loans to companies in which the directors of public joint stock companies and/or their spouses, children, and relatives up to the second degree hold over 20% of the capital are also prohibited (Article 153); and
• such companies and their subsidiaries may not provide financial aid – including loans, gifts, donations, or providing guarantees for a third party’s obligations – with the aim of allowing a person to hold securities issued by the company (Article 224).

The UAE Companies Law also prohibits managers of General Partnerships, as defined under the law, from “[m]aking donations other than routine minimal donations governed by commercial norms” (Article 49).

Additional guidance is also available from the various authorities entrusted with the remit of enforcing the UAE’s anti-corruption laws, including:

• the Anti-Corruption Department of the State Audit Institution (SAI);
• the Public Prosecutions Office;
• the Criminal Investigation Departments within each emirate’s police department;
• the Central Bank of the UAE’s (CBUAE) Financial Intelligence Unit (FIU);
• the Abu Dhabi Accountability Authority (ADAA);
• the Dubai Economic Security Centre (DESC); and
• the Dubai Financial Services Authority (DFSA).

The CBUAE, for example, has published its Guidance for Licensed Financial Institutions on Transaction Monitoring and Sanctions Screening (the LFI Guidance). The LFI Guidance provides useful information on matters such as potentially relevant data for transaction screening purposes (paragraph 3.4.2) and sufficient record-keeping to allow for tracking and analysing transactions (paragraph 4.4).

The UAE Penal Code, which only came into force in January 2022, was a key update replacing the previous penal code in place since 1987, which had previously been amended by several subsequent laws. Similarly, the UAEs AML Law was only recently enacted in 2018 and updated by Federal Decree-Law No 26/2021. There have been no significant amendments to the UAE’s anti-bribery and anti-corruption legislation in 2023.

Bribery is not strictly defined under UAE law but a general definition of what constitutes bribery can be gleaned from the various bribery-related offences, including those found in the UAE Penal Code. As a signatory to the UNCAC, ratified by virtue of Federal Decree No 8/2006, the UAE is also bound by the definition of bribery therein. The UNCAC broadly defines bribery within Chapter III as “the promise, offering or giving”, directly or indirectly, “of an undue advantage” to a person in order to elicit a certain action or inaction in breach of that person’s duties (Articles 15, 16, and 21). Notably, the UNCAC definition is applicable to public officials, foreign public officials, and persons working in the private sector.

Federal

The offences contained in Title 2, Chapter 1, Articles 275–287 of the UAE Penal Code provide broadly the same definition of bribery. Specifically, the UAE Penal Code describes bribery as involving a “public official or person assigned to a public service or foreign public official or an employee of an international organisation who, demands, accepts, or receives, either directly or indirectly, an undue gift, benefit, or grant… in order to perform or to omit an act included within the duties of his office…” (Article 275).

A public official, in respect of the UAE Penal Code, is defined as “any person holding a federal or local position whether legislative, executive, administrative, or judicial, whether appointed or elected” or any person “assigned to a public service” (Article 5). Article 6 of the UAE Penal Code also defines a foreign public official as a “person holding legislative, executive, administrative, or judicial office in another country, whether permanent or temporary, whether appointed or elected… and any person assigned to perform a public service.” A similar description of bribery is applicable to private sector employees and managers under Article 278.

Importantly, the UAE Penal Code also penalises:

• persons for bribery-related offences when an undue benefit is demanded, accepted, or received after the performance or omission of the act or duties (Articles 275 and 278);
• public officials, foreign public officials, and employees of international organisations who demand, accept, or receive an undue benefit to perform or omit an act that they mistakenly believe to be a part of their official duties (Article 276);
• persons who promise, offer, grant an undue benefit to public officials, foreign public officials, or persons in the private sector to perform or omit acts within their duties (Articles 279 and 280); and
• any attempt to commit the crimes under Title 2, Chapter 1 (Article 287).

The applicable penalties under the UAE Penal Code include temporary imprisonment, which may not exceed five years in the case of anyone who is not a public official, foreign public official, or employee of an international organisation. Anyone convicted of a bribery-related offence shall also be subject to a fine equal to the value of the bribe or AED5,000, whichever is higher (Article 283).

Dubai and Abu Dhabi

The Dubai Government HR Law, which applies to all civilian employees of the Dubai government (Article 3), also contains anti-bribery provisions. Under Article 34:

• bribery is defined as involving the accepting, requesting, or taking of “any amount, certain service or anything of material or moral value for the purpose of taking an unlawful or inappropriate action” or distinguishing between parties;
• government employees are forbidden from accepting material gifts “unless it is a symbolic or promotional gift and holding the name and logo of the entity offering it”; and
• any allowable material gift may only be accepted by the organisational unit of the given department designated to accept and distribute such gifts.

The Abu Dhabi Government HR Law, which applies to all civilian employees of the Abu Dhabi government (Article 2), contains broader anti-corruption provisions. Article 52 prohibits employees from committing or abstaining from any act in breach of their duties, or behaving in a way that is incompatible with requirements of the position or the applicable code of ethics. The Abu Dhabi Government HR Law also imposes a positive obligation on employees to perform duties “honestly and faithfully” and to “abide by the precepts of trust in disbursement of the funds of the Emirate and preserve the same” (Article 51).

Influence-peddling is also an offence under Article 281 of the UAE Penal Code, which states that anyone who “demands… accepts or receives a promise or gift to use a genuine or assumed influence … to obtain or in attempt to obtain… an undue grant, service, benefit, or any other advantage” shall face a jail sentence of at least one year and/or a fine of at least AED20,000.

The UAE Companies Law is applicable to most commercial companies established in the UAE (Articles 3 and 4). Commercial companies established in the various free zones will not be governed by the UAE Companies Law if they are not allowed to carry out their activities outside the relevant free zones (Article 5).

Article 346 of the UAE Companies Law imposes a prison sentence of six months to three years and/or a fine of AED200,000 to AED1 million on anyone who provides false information in company documents (Article 346). Furthermore, any “manager, director, auditor or liquidator that deliberately gives false information in the balance sheet or profit and loss account” or who omits material information to conceal a company’s true financial position will face imprisonment for six months to three years and/or a fine of AED100,000 to AED500,000 (Article 349).

Article 260 of the UAE Penal Code makes it an offence for a public official or person assigned to public service to embezzle public funds, with the offender sentenced to temporary imprisonment. The law imposes a harsher penalty, requiring a minimum five-year prison sentence, if the misappropriation of public funds involved committing forgery or the use of a forged copy of an official document. The offender will also be subject to a fine equal to the value of the embezzled funds or AED50,000, whichever is greater (Article 267).

Intermediaries in bribery-related offences are also penalised under Article 282 of the UAE Penal Code, which states that “[a]ny person who acts as an intermediary between the briber or the bribe-taker, to offer, demand, accept, receive, or promise the bribe, shall be sentenced to temporary imprisonment for a period not exceeding five (5) years.”

Bribery-related offences, including influence-peddling and acting as an intermediary to a bribe, are not subject to any limitation period. This includes both criminal lawsuits and any related civil actions (Article 286 of the UAE Penal Code).

Article 285 of the UAE Penal Code states that bribery-related offences contained in Title 2, Chapter 1, Articles 275–287 are subject to extraterritorial reach if:

• the wrongdoer or innocent party is a UAE national;
• the offence was committed using UAE public funds; or
• the offence was committed by a UAE public or private sector employee.

Pursuant to Article 21 of the UAE Companies Law, a company becomes a juristic person as at the date of its registration in the commercial register of the Competent Authority, as defined under the law. Article 66 of the UAE Penal Code imposes corporate liability on companies, stating that “juristic persons shall be held criminally liable for the crimes committed by their representatives, directors, or agents acting on their behalf or in their names.” Government bodies, official departments, and public authorities and establishments are exempt from corporate liability.

Under Article 66 of the UAE Penal Code, companies will be punished by fines not exceeding AED5 million, unless otherwise prescribed by law. Significantly, the imposition of corporate liability will not preclude the liability of individuals for the same offence.

Federal

The UAE Penal Code is relatively strict given that the only defence to bribery applies if the offender reports the crime to the judicial or administrative authorities before it is discovered (Article 284). In those instances, the offender will be exempt from liability, but the authorities may still confiscate the gift or bribe, if applicable (Article 96).

In the cases of public employees, even if the public employee did not intend to perform or abstain from performing his obligations in response to the circumstances set forth in Article 275, he will still be found liable for bribery under that Article, and so lack of intention is explicitly not a permissible defence.

The UAE Penal Code also sets out some general mitigating circumstances which may apply to bribery, such as the young age of the offender or for committing a crime for non-malicious motives (Article 97), or mental incapacity resulting in deficiencies or weakness in perception or will (Article 62). If mitigating circumstances are found, the sentence may be reduced to as little as three months (Article 99).

The UAE Penal Code also sets out some general defences and exceptions such as lack of “mental capacity or volition due to insanity or infirmity of mind or in a state of unconsciousness resulting from drugs, intoxicating or narcotic substances… given to him against his will or without his knowledge…” (Article 62). Voluntary consumption of drugs or intoxicating substances would preclude recourse to this defence. The UAE Penal Code states that no criminal action may be brought against an offender who was under eleven years of age at the time of committing the crime (Article 64). This is unlikely to occur in the context of bribery and corruption-related crimes. Another defence is necessity or coercion, whereby a person “commits a crime on necessity to protect his life or property or the life or property of a third party from serious and imminent danger, and where he himself has not deliberately caused such danger” (Article 65). Once again, this is unlikely to occur in the context of corruption-related crimes. These defences are not referenced specifically in the context of bribery offences but may nevertheless be found to be applicable by UAE courts.

The UAE AML Law also provides a defence in the context of money laundering. In Article 22, the court has discretion to limit or extinguish a prison sentence where the offender provides information which “leads to the disclosure, prosecution, or arrest of the perpetrators.” It is therefore clear that the law promotes co-operation with the authorities to tackle money laundering networks, rather than targeting and punishing individuals only.

Dubai

There are no specific defences to crimes of bribery or abuse of public office under the Dubai Penal Code, but there are general defences which Dubai courts may consider when assessing liability:

• age of the offender (Article 10);
• acts or omissions made in good faith (Article 11);
• lack of intent to commit the crime (Article 12);
• insanity (Article 14); and
• coercion (Article 17).

These defences may either be considered as mitigating circumstances which the courts would use to reduce the punishment or exempt the offender from liability completely.

The Dubai Government HR Law does not specifically set out defences to corruption or bribery in Article 34, but it does provide that a government department can only accept gifts through a unit which it identifies and publishes, and which may exclusively accept gifts on its behalf. The gifts would then be distributed within the department “at the unit’s discretion”. The giving of gifts must also be done through this same unit and can only be in the name of the department. Only in those instances would gift receiving be permissible and not punishable under the Dubai Government HR Law.

Article 7 of the Dubai Law on Illegally Obtained Funds provides for circumstances in which the prison sentence which would ordinarily be imposed will not apply, being:

• if the debtor is below the age of eighteen or above the age of seventy;
• if the debtor provides “a bank guarantee or solvent guarantor accepted by the judge of execution, to fulfil the debt on the specified dates” or if the debtor declared money located in the country which may sufficiently repay his debt; or
• if the debtor provides evidence that he has an incurable chronic disease which prevents him from withstanding imprisonment.

Article 5 also provides that the prison sentence may be shortened or terminated before expiry if all the money due has been repaid, or an amicable settlement has been reached between the debtor and the creditor.

Abu Dhabi

Given the general nature and breadth of the duties imposed by the Abu Dhabi Government HR Law in the context of corruption, there are no specific defences provided within this Law.

There are currently no exceptions for the defences set forth under the UAE, Dubai, or Abu Dhabi Laws in the context of corruption and bribery.

There is no de minimis exception threshold under any of these laws.

There are no exemptions afforded to particular sectors or industries under the UAE Federal laws.

There are no exemptions afforded to particular sectors or industries under the Dubai Penal Code. It is worth noting, however, that by contrast to the UAE Penal Code, bribery is only criminalised by the Dubai Penal Code in the context of public officials, services and funds, and does not expressly apply to bribes to private entities.

There is no form of safe harbour or amnesty programme based on self-reporting or adequate compliance procedures/remediation efforts under the UAE Penal Code. There are, however, general provisions relating to amnesty, special pardon and judicial pardon which apply to all crimes under the UAE Penal Code (Title 9).

There is no form of safe harbour or amnesty programme offered specifically in the context of bribery in the Dubai Penal Code, but there is a general provision in Article 3 which recognises the power of His Highness the Ruler to grant amnesty to reduce, suspend or mitigate any sentence in whole or in part in connection with the Dubai Penal Code.

No other laws contain safe harbour or amnesty programmes.

Federal

The penalties awarded in relation to bribery under the UAE Penal Code may vary depending on whether the offender is a public official or a private person (whether acting on behalf of himself or a private corporation).

The penalty awarded to any bribe-taker who is an employee of a private entity is a prison sentence of up to five years. For bribe-takers who are public officials, the penalty is also imprisonment, but there is no maximum sentence specified.

The penalty awarded to any briber, whether making a bribe to an employee of a private entity or a public official (as described), is a prison sentence of up to five years (Articles 279 and 280).

Any bribe-taker who demands or receives a gift or bribe to use their influence for obtaining any undue advantages from a public department or authority will be liable to a prison sentence of up to one year and/or a fine of at least AED20,000. If the offender is a public official, the penalty will be increased to a sentence of up to five years (Article 281).

Any intermediary between the briber and the bribe-taker will also receive a prison sentence of up to five years, regardless of the identities of the briber and bribe-taker.

In all cases, the offender is also liable for a fine equivalent to the value of the gift or bribe in question, with the fine not being less than AED5,000. If the bribe-taker is a public official, the gift received will be confiscated.

The UAE AML Law provides the following penalties in Articles 22–31 in the context of financial crime and money laundering.

• A ten-year prison sentence and/or a fine between AED100,000 and AED5 million for anyone who commits (or attempts to commit) money laundering as defined under Article 2(1).
• Temporary imprisonment and a fine between AED300,000 and AED10 million if the perpetrator of money laundering abuses his/her influence or powers granted to him/her by his/her profession, if he/she committed (or attempted to commit) the crime through a non-profit organisation or organised crime group, or in case of Recidivism.
• Life imprisonment or temporary imprisonment of more than ten years and a fine between AED300,000 and AED10 million for anyone who uses Proceeds for terrorist financing (as defined in this Law).
• A fine between AED500,000 and AED50 million for the beneficiary of the crimes committed under this Law.
• Imprisonment and a fine between AED100,000 and AED1 million for any financial institutions and designated non-financial businesses and professionals who intentionally or by gross negligence fail to report to the FIU any suspicion of any crime as set out in this Law.
• Imprisonment of more than six months and a penalty between AED100,000 and AED500,000 to anyone who “notifies or warns a person or reveals any transaction under review to suspicious transactions or being investigated by the Competent Authorities”.
• Imprisonment or a fine between AED50,000 and AED5 million to anyone who violates instructions issued by the Competent Authority in the UAE for implementation of the directives of UN Security Council (Article 28).
• Imprisonment and a fine between AED10,000 and AED100,000 to anyone who violates any other provision in this Law (Article 31).

Dubai

The Dubai Penal Code provides that any bribe-taker who receives the bribe to personally perform or refrain for performing his obligations as a public official, or to influence a public official to perform or refrain from performing his obligations, will receive a prison sentence of up to three years and/or a fine of up to SAR5,000 (Articles 118 and 119).

The briber in these instances would only receive a prison sentence of up to two years and/or a fine of up to SAR3,000. While the bribe-taker must be a public official for this particular offence to arise, the briber may not always be, so the higher responsibility on public officials is reflected in the higher limit on their penalties (Article 120).

If a public official is aware that a person is involved in a certain matter in any way, including but not limited to by way of familial relation, and the public official receives from that person something free of charge which he knows should be of value, or pays consideration for something which he knows should be free of charge, then both that public official and the briber will be subject to a prison sentence of up to one year and/or a fine of up to SAR1,000 (Articles 121 and 122).

If a public servant uses force or violence to extract information or a confession from a person, or threatens to inflict harm on that person or their property for these purposes, the public servant will receive a prison sentence of up to three years and/or a fine of up to SAR3,000 (Article 123).

Public servants who have previously directly or indirectly owned a share or personal benefit in any funds which they are now entrusted to manage in their public capacity will receive a prison sentence of up to one year and/or a fine of up to SAR1,500 (Article 124).

If a public servant whose job is to make claims, submit statements or provide certifications, does so falsely and knowingly, they will receive a prison sentence of up to three years and/or a fine of up to SAR3,000 (Articles 125 and 127).

If public servants abuse their power in any way, including entering someone’s home without their consent outside of what is permitted by law, they will receive a prison sentence of up to two years and/or a fine of SAR2,000 (Article 126).

Public servants who abuse the trust of the public and act fraudulently will receive a sentence of up two years and/or a fine of up to SAR3,000 (Article 128). The punishment for negligence is only slightly lower, with up to two years in prison and/or a fine of up to SAR2,000 (Article 129).

Anyone whose employment duty is to deal with public revenues or funds and who knowingly submits an incorrect statement or disclosure pertaining to these funds will receive a prison sentence of up to five years and/or a fine of up to SAR5,000 (Article 130).

Legal entities are also liable for all of the above penalties by virtue of Article 23, which deems corporate entities liable to the fines outlined above in cases where a legally authorised person commits a crime, authorises it or incites it, or if the corporate entity neglects to perform a legal duty or commits any type of act that would be considered one of the crimes above if a natural person committed it.

It is worth noting that the currency stated in the Dubai Code is in Saudi Riyals because the Dubai Penal Code came into effect in 1970, and this was the currency used at the time. The fine limits also seem disproportionately low compared to the potential custodial sentences, but this provides the courts with wide discretion to decide on a case-by-case basis what the appropriate punishment should be.

Article 2 of the Dubai Law on Illegally Obtained Funds provides that any person who obtains Illegal Money, as defined under the law, and fails to repay it for any reason will be liable to the following penalties depending on the amount of Illegal Money in question:

• if the Illegal Money is not less than AED500,000 and not more than AED1 million, then the debtor will be imprisoned for five years;
• if the Illegal Money is more than AED1 million and up to AED5 million, then the debtor will be imprisoned for ten years;
• if the Illegal Money is more than AED5 million and up to AED10 million, then the debtor will be imprisoned for 15 years; and
• if the Illegal Money is over AED10 million, then the debtor will be imprisoned for 20 years.

Abu Dhabi

Given the general nature of the offences under the Abu Dhabi Government HR Law, the penalties are also general in nature. Article 62 provides that the disciplinary penalties that may be inflicted on an employee include written notice, written warning, deduction from the salary of an amount of up to 15 days’ salary for every violation, deprivation from any annual bonus, suspension from work without a salary (except for housing allowance) and dismissal from service.

There are no guidelines on the assessment of appropriate penalties in any of these laws. This is at the court’s discretion.

There are no specific requirements under Federal UAE laws for companies to have compliance programmes in place.

Businesses in regulated sectors (such as financial services) may also have regulatory obligations to manage financial crime risk, including in respect of corruption.

Lobbying activities are not specifically regulated.

Chapter 4 of the UAE Penal Code sets out some general provisions relating to failure to report crimes. Article 321 imposes a duty on everyone, including public officials who are assigned to investigate or report crimes, as well as employees who are not assigned to such tasks. The only exemption from this duty is if such a person “is the spouse of the perpetrator, or any of his ascendants, descendants, brothers, sisters, or those relatives regarded the same by virtue of affinity ‘al-musaharat’”. This exemption does not apply to public officials who are assigned to investigate and report crimes.

The UAE AML Law provides an obligation on financial institutions to disclose suspicious activities in relation to money laundering and financial crime. A further obligation is also imposed by Article 30 which imposes a prison sentence or fine on any person who intentionally fails to provide additional information upon request, deliberately conceals information or presents incorrect information.

In recent years, whistle-blowers have gained increasing protection in the UAE, although there is no Federal, general regime providing for a consistent level of protection.

The Dubai Economic Security Centre (DESC) was established in 2016 by Dubai Law No 4 of 2016, for the purpose of combatting corruption and bribery in relation to Dubai entities. This includes Dubai government agencies and local government entities which perform economic activities in Dubai. DESC works directly with the UAE Public Prosecution with regards to seizure of property, co-ordination of access to information and data relating to any ongoing investigations.

DESC provides the following protections to whistle-blowers in the context of crimes relating to UAE government entity funds:

• providing protection to the whistle-blower at his place of residence;
• not disclosing any information relating to the whistle-blower’s identity or whereabouts;
• protecting the whistle-blower at his place of work to ensure he is not subject to discrimination or ill treatment; and
• no legal action is to be taken against the whistle-blower except in instances of false reporting.

UAE free-zones have also started providing protection to whistle-blowers. In 2018, the DIFC issued Operating Law No 7 which protects individuals from liability or dismissal from employment who, in good faith, disclose information relating to a reasonable suspicion of a breach of law.

The UAE Central Bank’s Whistleblowing Policy also contains Whistle-blower’s protection where if the whistle-blower is subject to retaliation as a result of his co-operation and disclosure, the whistle-blower is eligible to make a claim with supporting evidence showing the retaliatory acts are due to the whistle-blowing and, upon a finding of retaliatory action, the compliance unit will prepare a formal report along with recommendations to H.E. the Governor.

UAE Federal Tax Authority released a new User Guide on 14 April 2022 which announced a whistle-blowing system for violations and tax evasions called Raqeeb, which is formed for the purpose of encouraging members of the public to “report non-compliant business activities”. The Guide details the incentives and rewards that may be awarded to “eligible informants” and the amount of the reward is “directly proportionate to the amount of tax collected by the FTA as a result of the information and submitted lead”.

An informant is eligible if the information provided is credible and not previously obtained by the FTA, the whistle-blowing form is filled out in accordance with the Guide, the FTA collected tax amounts over AED50,000 and the reported person exhausted all forms of objections and appeals.

As discussed in 6.4 Protection Afforded to Whistle-Blowers, the relevant provisions regarding whistle-blowing are located in the Dubai Law No 4 of 2016 and DIFC’s Operating Law No 7 of 2018.

Anti-bribery and anti-corruption laws are enforceable by various enforcement bodies as detailed in 7.2 Enforcement Body.

Federal

There are a number of enforcement bodies at a federal level in the UAE which are responsible for enforcing anti-corruption regulations.

The UAE Public Prosecution is the enforcement body responsible for bringing action against offenders of the UAE Penal Code. The UAE Public Prosecution works closely with the police in the relevant emirate and other emirate-level enforcement bodies to gather information and evidence which may be relevant to any given case.

The Anti-Money Laundering and Suspicious Cases Unit of the UAE Central Bank formed the State Audit Institution for the purpose of combatting money laundering and financial crime at a federal level.

The UAE Human Resources Law also established the Violation Committee which is responsible for prosecuting violations of the UAE Human Resources Law.

Dubai

The Dubai Economic Security Centre (DESC) was established in 2016 by Dubai Law No 4 of 2016, for the purpose of combating corruption and bribery in relation to Dubai entities. This includes Dubai government agencies and local government entities which perform economic activities in Dubai. DESC works directly with the UAE Public Prosecution with regards to seizure of property, co-ordination of access to information and data relating to any ongoing investigations.

The Dubai Financial Services Authority (DFSA) and Financial Services Regulatory Authority (FSRA) regulate the ADGM and DIFC freezones, respectively. The DFSA and FSRA only have jurisdiction to the extent the circumstances give rise to a breach of their specific regulations. Otherwise, they will work with the UAE Public Prosecution by gathering information and providing access to it.

Abu Dhabi

Generally, police at the individual emirate-level are responsible for enforcing and prosecuting individuals under the UAE Penal Code.

The Abu Dhabi Accountability Authority (ADAA) is an anti-corruption task unit which was established by the Abu Dhabi Law No 14 of 2008 and is mandated to enforce by Abu Dhabi Law No 19 of 2020. The ADAA is responsible for investigating financial or administrative discrepancies and other suspicious activities in the public sector finances. ADAA has jurisdiction over courts, police and companies where the government owns at least 25% of the capital. The Abu Dhabi Administrative Decision No 34 of 2021 came into force and it forms the basis on which the ADAA exercises and enforces its powers.

This is not applicable.

The regulations above are general in nature and do not provide specific details on the methods of enforcement or mitigation in respect of corruption offences.

As discussed in 7.2 Enforcement Body, the jurisdictional reach of each enforcement body varies.

There have been a number of recent cases involving bribery, corruption and financial crime.

In 2023, the Abu Dhabi Money Laundering Court convicted a defendant and sentenced him to 15 years’ imprisonment for appropriation and intentional damage to public funds, forgery and use of forged official and customary documents and restitution of the embezzled sums. A fine of AED40 million was also awarded (equivalent to the sums defalcated). An additional AED10 million fine and ten-year prison sentence were imposed for money laundering. The gravity of the penalty is intended to demonstrate the UAE’s goal to preserve public funds and commitment to taking all measures to combat and counter financial crimes.

As discussed in 7.6 Recent Landmark Investigations or Decisions Involving Bribery or Corruption, the sanctions imposed were fines of AED40 million and AED10 million as well as a ten-year prison sentence.

Transparency International’s Corruption Perceptions Index (CPI), which offers an annual update of corruption in countries around the world, ranked the UAE 27 out of 180 countries and territories considered. The ranking means the UAE has the highest score in the MENA region, and scores better on the CPI than countries such as Israel, South Korea, Spain, Italy, and China. Although the CPI does not directly assess enforcement of applicable legislation in each country, some of the sources it draws upon to create its composite score do consider factors such as the existence of adequate laws and legal protections for whistle-blowers.

The Financial Action Task Force (FATF), a 39-member organisation that promotes international standards in respect of anti-money laundering and terrorist financing, released a report in July 2023 on the UAE’s compliance with FATF Recommendations (the FATF Report). The FATF Recommendations support the fight against corruption by increasing transparency and facilitating prosecution of corruption and money laundering offences. The FATF evaluates countries on their adherence to the standards promoted by the FATF Recommendations and maintains a list of jurisdictions it considers lacking (the Grey List). The FATF added the UAE to its Grey List in March 2022. The FATF Report acknowledged that the UAE has taken several steps to improve its AML and CTF compliance, and gives the UAE improved ratings against the 40 FATF Recommendations. The UAE is expected to continue demonstrating a strong commitment to its AML/CTF efforts and adherence to anti-corruption standards, with the aim of being removed from the Grey List.

As discussed in 1.4 Recent Key Amendments to National Legislation, the UAE has made a number of legislative changes to its anti-bribery and anti-corruption regime in the past several years. Although no specific changes to the applicable legislation or enforcement bodies is expected in the foreseeable future, the UAE is expected to continue on its positive trajectory of combating bribery and corruption.