Comparative Guides
Welcome to Mondaq Comparative Guides - your comparative global Q&A guide.
Our Comparative Guides provide an overview of some of the key points of law and practice and allow you to compare regulatory environments and laws across multiple jurisdictions.
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Results: 4 Answers
Anti-Corruption & Bribery
4.
Compliance
4.1
Is implementing an anti-corruption compliance programme a regulatory requirement in your jurisdiction?
 
United Arab Emirates
No set compliance programme requirement is set out in the UAE corruption laws. However, the United Arab Emirates is very serious about corruption and bribery, and the obligation to prevent it is imposed on public officers, private companies and individuals alike. The penalties for bribery and corruption are severe and, in the case of private companies, if the board consented to the bribery, the entire board can be found guilty; such exposure encourages companies to prevent bribery and corruption as far as possible. As such, all companies have developed their own internal mechanisms in line with the law to deal with corruption. They have instituted programmes to restrict the chances of bribery and corruption occurring, and will punish the occurrence of either very strictly.

For more information about this answer please contact: Nadim Bardawil from BSA Ahmad Bin Hezeem & Associates LLP
4.2
What compliance best practices should a company implement to mitigate the risk of anti-corruption violations?
 
United Arab Emirates
  • Adopt strict and clear policies to avoid corruption that are specifically tailored to the company’s business, and ensure they are applied and enforced from the very top of the company to the very bottom.
  • Encourage reporting of offences, where such offences have been witnessed, by offering protection for whistleblowers, by investigating each claim and by rewarding such reports. In the case of completely fabricated reports, punishment should be administered, as this will discourage frivolous and ‘personal vendetta’ related reporting.
  • Utilise external monitoring such as external auditors to audit both incoming and outgoing accounts, and to ensure that a clear and clean financial path can be attributed to the company’s money. In case of a discrepancy, forensic accountants should be appointed to investigate.
  • Operate transparently by making accounting records fully and freely accessible. This would immediately discourage bribery and corruption, as such offences could easily be identified if the records were freely available.
For more information about this answer please contact: Nadim Bardawil from BSA Ahmad Bin Hezeem & Associates LLP
4.3
Which books and records requirements have relevance in the anti-corruption context?
 
United Arab Emirates
Under Article 26 of Federal Law 2/2015 and Articles 2 and 3 of the Executive Regulations for the Tax Procedures Law (7/2017), accounting records must accurately show the company’s financial standing and must further be kept for a period of five years after the company’s financial year end.

Articles 26 to 38 of the Federal Commercial Transactions Law (18/1993) state that a company must keep financial records as required by the nature of the business of the company to accurately show its financial standing. Furthermore, a daybook and general ledger must also be utilised.

Financial institutions must also keep records of documents as prescribed by relevant supervisory authorities from time to time for a period of five years, including relevant judgments, inspection reports and the outcome of any investigations conducted by relevant authorities, and any details pertaining to the closure of a client account.

In the Dubai International Financial Centre (DIFC), companies, limited partnerships and registered partnerships are governed respectively by the DIFC Companies Law, the General Partnership Law and the Limited Partnership Law.

Article 101 of the DIFC Companies Law states that a company must keep accounting records for a period of six years; while Article 18 of the General Partnership Law and Article 26 of the Limited Partnership Law state that records must, with reasonable accuracy, disclose the financial position of the business.

For more information about this answer please contact: Nadim Bardawil from BSA Ahmad Bin Hezeem & Associates LLP
4.4
Are companies obliged to report financial irregularities or actual or potential anti-corruption violations?
 
United Arab Emirates
Yes - as is anyone.

Article 274 of the Federal Penal Code obliges a person to report a crime. Furthermore, it is illegal to knowingly fail to report money laundering or the financing of criminal organisations or terrorism.

For more information about this answer please contact: Nadim Bardawil from BSA Ahmad Bin Hezeem & Associates LLP
4.5
Does failure to implement an adequate anti-corruption programme constitute a regulatory and/or criminal violation in your jurisdiction?
 
United Arab Emirates
No, there is no formal requirement in the bribery and anti-corruption legislation for companies to have implemented an anti-corruption programme. However, as discussed in question 4.1, companies implement their own compliance programmes, as the penalties for bribery and corruption are strictly enforced and are severe.

For more information about this answer please contact: Nadim Bardawil from BSA Ahmad Bin Hezeem & Associates LLP