A new law issued in Dubai on Wednesday grants the Financial Audit Authority (FAA) enhanced powers to investigate internal violations and impose disciplinary penalties. Signed by Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE, and Ruler of Dubai, Law No. (24) of 2024 amends previous legislation governing the FAA, notably replacing Articles 34, 35 and 36 of the 2018 law. These changes empower the FAA to take significant action in cases of employee misconduct, further strengthening internal governance.
Under the new provisions, the FAA’s Director General now holds the authority to take disciplinary measures against employees who violate the authority’s regulations. Actions may include suspending employees, seizing relevant documents or dismissing investigations when allegations lack evidence or are deemed baseless. For minor violations, disciplinary actions may be sufficient to close the case without prosecution. However, criminal offenses must be referred to the Dubai Public Prosecution for further action.
The amendment also introduces measures for asset freezes and travel bans, which can be imposed on offending employees for up to three months, with the possibility of extension if necessary. In cases where funds or profits gained from misconduct are fully recovered, a settlement may be reached, potentially closing the investigation without prosecution but still allowing for disciplinary measures.
Additionally, the law enables employees to appeal disciplinary decisions after three months, with provisions for earlier appeals in cases where a valid reason exists. By amending the FAA’s founding law, Dubai aims to ensure accountability and ethical standards within its financial oversight institutions, promoting transparency and governance in line with its commitment to regulatory integrity.