Financial Crime World

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Defending Against Defamation in the UAE: A Guide for Businesses

In the United Arab Emirates (UAE), defamation is a serious issue that can have severe consequences for individuals and businesses alike. Article 44(3) of the Cybercrimes Law explicitly states that an offence will be committed if information is spread to harm an individual, even if that information is true and correct.

The Importance of Defending Against Defamation

As a result, businesses must take great care when conducting internal investigations or reporting on alleged misconduct, particularly when it comes to public officials. In this article, we will explore the importance of defending against defamation in the UAE and provide guidance on how to do so.

Defamation and Witness Interviews

When conducting witness interviews during an investigation, companies must identify the employees who need to be interviewed while keeping in mind proportionality and confidentiality concerns. It is essential to preserve witnesses’ rights, especially if they are personally at risk of disciplinary action or personal civil, regulatory, or criminal liability.

  • Two lawyers should typically attend the interview: one to conduct it and the other to transcribe it.
  • Each witness should be informed that counsel is acting on behalf of the company, not the individual employee.
  • Care must be taken not to allow witnesses to taint each other’s evidence by holding group discussions or interviews, or relating the evidence of one witness to another during an interview.

Practical Issues

During the investigation, companies may encounter various practical issues. For instance:

  • They may need to review policies and procedures to determine whether disciplinary action is necessary against specific employees or if criminal or civil proceedings need to be commenced against particular individuals.
  • They should also consider the corrective action required following the results of an investigation.

Reporting and Remediation

If a report is made to a regulator or government department, it is recommended that the company inform them of the preventative or disciplinary steps already taken. This will likely factor into the latter’s decision-making when determining what action to take and penalties, if any, to apply.

  • Companies must also consider the corrective action required following the results of an investigation.
  • This may include taking disciplinary action against employees or commencing legal proceedings against individuals.

Conclusion

In conclusion, defending against defamation in the UAE is crucial for businesses. The UAE’s regulatory system has undergone significant changes in recent years, and internal investigations have become increasingly relevant as a risk management tool for companies.

This article highlights some of the many issues that may arise when planning and conducting an investigation. It is essential to ensure compliance with UAE law, which contains some pitfalls for the unwary, and to protect a business’s interests from a risk, regulatory, and reputational perspective.