UAE Law and Practice Contributed by: Stuart Paterson, Janine Mallis, Tania Forichon and Elif Eren Ozenir, Herbert Smith Freehills Kramer LLP
Under Article 457 of the Penal Code, an offender under Article 456 of the Penal Code (see 3.11 Concealment ) may be exempt from punishment if they proactively inform the judicial or administrative authorities of the crime and the perpetrators, before the crime is dis - covered. If the disclosure occurs after the crime is discovered, the court may still grant an exemption if the information leads to the arrest of the offenders. Under Article 61 of the Cybercrimes Law, the court, based on a request from the public prosecutor, may reduce or exempt from punishment any perpetrators who give information to the judicial or administrative authorities related to any crimes pertaining to the security of the UAE, whenever this leads to discover - ing the crime and its perpetrators, or to proving the crime or to the arrest of any of the perpetrators. 4.4 Whistle-Blower Protection While Article 323 of the Penal Code imposes a general obligation to report crimes, there is no overarching federal whistle-blower protection regime. However, free zone-specific frameworks have emerged in the DIFC and ADGM. In the DIFC, whistle-blower protections were first intro - duced under Article 64 of the DIFC Operating Law No 7 of 2018, where a disclosure qualifies for protection if it is made in good faith, includes the whistle-blower’s identity, and relates to a reasonable suspicion of con - travention of DIFC laws or regulations. In 2022, the DFSA expanded this framework under Article 68A of the DIFC Regulatory Law 2004 and the DFSA Rule - book, applicable to DFSA-regulated entities only. In July 2024, the ADGM introduced a comprehensive whistle-blower regime through the Whistleblower Protection Regulations 2024 and amendments to the Employment Regulations 2019. To qualify for protection under both the DIFC and ADGM regimes, a disclosure must be: • based on reasonable suspicion of a contravention of applicable laws or rules, or financial crimes; • made in good faith; and • submitted through an internal or external reporting channel (auditors, the DFSA or FSRA, or other law enforcement authorities).
Disclosures may be made anonymously. Whistle-blowers are explicitly protected from retalia - tion, including civil or contractual liability and termina - tion or adverse employment actions by employers or affiliated parties. DIFC and ADGM entities must implement and main - tain “appropriate and effective” arrangements to facilitate disclosures, assess and escalate concerns, protect confidentiality and prevent retaliation. Entities must also maintain written records of disclosures and investigations – in the case of ADGM entities, for a minimum of six years. Separately, there are sector-specific developments aimed at encouraging the reporting of misconduct: • under Dubai Law No 4 of 2016 on Financial Crime, a disclosure made to the Dubai Economic Security Centre will be protected if it is true and relates to an activity that may impact the economic security of Dubai; • the UAE Ministry of Finance developed a platform called “Wajib”, a mobile app-based platform that allows individuals to confidentially report financial or administrative misconduct within UAE govern - ment entities; and • under Article 47, the Labour Law introduced quasi whistle-blower protections prohibiting the termina - tion of an employee or legal action against them for filing a serious and truthful complaint with the Ministry of Human Resources and Emiratisation. 4.5 Cross-Border Defence Strategies There is no formal mechanism for co-ordinated defence involving multiple jurisdictions. If parallel pro - ceedings are a risk, fact-specific defence strategies must consider simultaneous engagement with UAE and foreign authorities. 5. Key Trends and Future Outlook 5.1 The Year Ahead See the Trends and Developments section.
293 CHAMBERS.COM
Powered by FlippingBook