Dubai has implemented new amendments to its law governing financial misconduct penalties for employees within the Financial Audit Authority, granting the agency enhanced powers to tackle violations. Under the law issued by Dubai Ruler Sheikh Mohammed bin Rashid Al Maktoum, the Director General of the Financial Audit Authority can now impose a range of measures against offending employees, including suspensions, confiscation of relevant documents, and even travel bans and asset freezes.
The law stipulates that minor infractions may be resolved through internal disciplinary actions, while criminal offenses must be forwarded to Dubai Public Prosecution. Travel bans and asset freezes can initially last up to three months, with the possibility of extension. Employees facing these sanctions can appeal after three months unless there are grounds for an earlier appeal.
Settlements are also an option if misappropriated funds are recovered, closing investigations without further prosecution while still permitting disciplinary measures. Law No. (24) of 2024 replaces certain provisions of the 2018 law, establishing a structured process for reviewing disciplinary actions.
The amendment introduces a “Central Violations Committee” to review penalty compliance by senior officials. The committee, composed of three members appointed by the Director General, can uphold, modify, or dismiss penalties based on the evidence. Additionally, employees may appeal to a newly formed Grievances Committee within 15 days of a ruling. This committee, comprised of senior representatives, has the final authority on decisions, though judicial appeals remain open.
The new law takes effect immediately and will be published in Dubai’s Official Gazette.
