Financial Crime World

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Whistleblower Protection Regime Introduced in Dubai Financial Centre

In a significant move to strengthen financial regulations in the United Arab Emirates, the Dubai Financial Supervisory Authority (DFSA) has introduced a whistleblower protection regime for companies operating within the Dubai International Financial Centre (DIFC).

Regime Overview

The regime, which came into effect on April 7, 2022, aims to promote a culture of transparency and accountability by making it mandatory for regulated entities to implement effective policies and procedures for reporting and assessing regulatory concerns.

Key Provisions

  • Any individual who reports a suspected violation of financial regulations or laws in good faith will be protected from civil or contractual liability.
  • Companies are prohibited from subjecting whistleblowers to unfair treatment or dismissal.
  • Reports must be made internally within the regulated entity or externally to its auditor, the DFSA, or a law enforcement agency.
  • The report must relate to a reasonable suspicion of financial misconduct, such as money laundering or fraud, and must be made honestly and without malicious intent.

Requirements for Regulated Entities

  • Companies must have written guidelines and procedural rules in place for whistleblower communications.
  • Measures must be taken to protect the identity of the whistleblower and ensure fair treatment of those accused of wrongdoing.

Federal Tax Authority’s Whistleblower Program (Raqeeb)

In addition to the DFSA’s regime, the Federal Tax Authority has introduced a whistleblower program known as Raqeeb. This program allows individuals to report tax violations and evasion anonymously.

Key Features

  • Confidentiality is promised for whistleblowers.
  • Potential compensation may be available for whistleblowers who come forward with credible information.

Impact and Future Expectations

The introduction of these regimes marks an important step towards establishing comprehensive whistleblower protection in the UAE, bringing the country more in line with international standards. As the DFSA continues to monitor compliance with the new regulations, it is expected that the impact will be felt across the financial sector and beyond.

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