Financial Crime World

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Whistleblower Protection in Finance: A Growing Trend in the United Arab Emirates

In recent years, the concept of whistleblowing has gained significant attention worldwide. While there is no federal law on whistleblowing in the UAE, several legal developments have taken place to promote transparency and accountability in the financial sector.

Establishment of the Dubai Economic Security Centre (DESC)

The Dubai Law No. 4/2016 established the DESC, which aims to combat corruption, fraud, and other economic crimes. The DESC defines a whistleblower as an individual who reports or cooperates with the centre about any matter that may prejudice the economic security of Dubai. The law ensures confidentiality and protection for whistleblowers from retaliation or discrimination.

Whistleblowing Policies in Freezones

Several freezones in the UAE have adopted whistleblowing policies. This article examines the policies adopted by the:

  • Dubai Multi Commodity Centre (DMCC)
    • Issued a whistleblowing guidance note for its members in November 2019, defining whistleblowing as any concern regarding actual or potential illegal activity.
    • The policy extends to employees, consultants, and owners of properties within the freezone.
  • Dubai International Financial Centre (DIFC)
    • Published its Whistleblowing Regime in April 2022, which applies to registered auditors, licensed financial institutions, and other entities.
    • Requires these entities to establish effective policies and procedures for reporting regulatory concerns.
  • Abu Dhabi Global Markets (ADGM)
    • Issued Guiding Principles on Whistleblowing in December 2022, providing a comprehensive framework for whistleblowing.
    • Emphasizes the importance of non-retaliation, confidentiality, and due process.
    • Highlights the need for a robust whistleblowing culture within organizations, with adequate training and awareness sessions for staff and managers.

Conclusion

In conclusion, whistleblower protection is gaining importance in the UAE’s financial sector. The adoption of whistleblowing policies by freezones and regulatory bodies demonstrates a commitment to transparency and accountability. As the regulatory landscape continues to evolve, it is essential for organizations to establish effective whistleblowing frameworks that protect employees and promote ethical business practices.

Key Takeaways

  • Whistleblower protection is gaining importance in the UAE’s financial sector.
  • Several freezones have adopted whistleblowing policies, including the DMCC, DIFC, and ADGM.
  • Effective whistleblowing policies are essential for promoting transparency and accountability.
  • Organizations should establish robust whistleblowing frameworks that protect employees and promote ethical business practices.