Amendments to Law No. (4) of 2018 on the Establishment of the Financial Audit Authority in Dubai
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- The amended Article (34) of Law No. (24) of 2024 empowers the Director-General of the Financial Audit Authority to address employee misconduct through various actions, such as suspension, document confiscation, or dismissing baseless investigations. Minor violations may be resolved with disciplinary actions rather than prosecution. Confirmed criminal offenses must be referred to the Dubai Public Prosecution. Travel bans and asset freezes can last up to three months, with possible extensions. Appeals are allowed after three months unless justified sooner. Settlements are possible if misappropriated funds and profits are recovered, closing the investigation without prosecution but permitting disciplinary actions.
- Article (35) of the amended law allows the Director-General of the Financial Audit Authority to evaluate if disciplinary penalties for employees are appropriate for the violations committed. If the penalties are suitable, the Authority informs the entity to approve them; if not, the Director-General can request harsher penalties, which must be reported back to the Authority within seven days. Non-compliance leads to referral to the Central Violations Committee. This Committee, consisting of three members appointed by the Director-General, reviews non-compliance cases and violations by senior officials, with the power to uphold, increase, or dismiss penalties. Both employees and senior officials can appeal the Committee's decisions within 15 days to the Grievances Committee as per the law.
- The amended Article (36) mandates the creation of a permanent 'Grievances Committee' within the Financial Audit Authority. This Committee handles complaints from employees and officials regarding disciplinary actions imposed by the Central Violations Committee. The committee's chairperson defines its procedures and authority. While the committee's decisions are final and not subject to administrative appeal, appellants can pursue legal recourse.
By Pascale Dona
Senior Legal Editor
Pascale Dona joined Thomson Reuters in 2014 as Content Specialist. In 2007, Pascale graduated from the Lebanese University with a Bachelor’s Degree in Law, then moved to France and completed her Master’s degree in International Law from Nice Sophia Antipolis University. Pascale has more than 10 years of experience as legal Specialist in Lebanon and UAE. She is a native Arabic speaker and proficient in English and French.
Pascale is currently a Senior Legal Editor for Thomson Reuters MENA. She is based in Dubai and is responsible for maintaining and providing the latest legal content for the MENA region.