Law No. (4) of 2016
Establishing the
Dubai Economic Security Centre[1]
ـــــــــــــــــــــــــــ
We, Mohammed bin Rashid Al Maktoum, Ruler of Dubai,
After perusal of:
Federal Law No. (3) of 1987 Issuing the
Penal Code and its amendments;
Federal Law No. (35) of 1992 Issuing the
Criminal Procedures Law and its amendments;
Federal Law No. (4) of 2000 Establishing the
Emirates Securities and Commodities Authority and Market and its amendments;
Federal Law No. (4) of 2002 Concerning
Countering Money Laundering Crimes and Combatting Terrorism Financing and its
amendments;
Federal Law No. (39)
of 2006 Concerning International Judicial Cooperation in Criminal Matters;
Federal Law No. (7) of
2014 Concerning Combatting Terrorist Crimes;
Federal Law No. (2) of
2015 Concerning Commercial Companies;
Cabinet Resolution No. (35) of 2014 Regulating Terrorism
Lists;
Law No.
(5) of 1995 Establishing the Department of Finance;
Law No.
(3) of 2003 Establishing the Executive Council of the Emirate of Dubai;
Law No.
(9) of 2004 Concerning the Dubai International Financial Centre and its
amendments;
Law No.
(25) of 2008 Concerning the Department of Economic Development;
Law No.
(37) of 2009 Concerning Procedures for the Recovery of Public Funds and other
Funds Acquired by Illegal Means;
Law No.
(8) of 2010 Concerning the Financial Audit Department and its amendments;
Law No.
(2) of 2011 Concerning the Department of Islamic Affairs and Charitable Activities;
Law No.
(13) of 2011 Regulating the Conduct of Economic Activities in the Emirate of
Dubai and its amendments;
Law No.
(13) of 2015 Establishing the Free Zone Council in the Emirate of Dubai;
Law No.
(1) of 2016 Concerning the Financial Regulations of the Government of Dubai;
Decree No.
(22) of 2009 Concerning Special Development Zones in the Emirate of Dubai;
Decree No.
(9) of 2015 Regulating the Raising of Donations in the Emirate of Dubai;
Regulation
No. (3) of 2006 Determining Areas for Ownership by non-UAE Nationals of Real
Property in the Emirate of Dubai and its amendments;
Executive
Council Resolution No. (26) of 2013 Concerning Charitable Associations, Bounteous Quran
Memorisation Centres, and Islamic Foundations in the Emirate of Dubai; and
The
legislation establishing and regulating free zones in the Emirate of Dubai,
Do hereby issue this Law.
This Law will be cited as "Law No. (4) of 2016
Establishing the Dubai Economic Security Centre".
The following words and expressions, wherever
mentioned in this Law, will have the meaning indicated opposite each of them
unless the context implies otherwise:
|
UAE: |
The United Arab Emirates. |
|
Emirate: |
The Emirate of Dubai. |
|
Ruler: |
His Highness the Ruler of
Dubai. |
|
Government: |
The Government of Dubai. |
|
Executive Council: |
The Executive Council of the
Emirate of Dubai. |
|
DESC: |
The Dubai Economic Security
Centre established pursuant to this Law. |
|
CEO: |
The chief executive officer
of the DESC. |
|
Government Entity: |
Any of the Federal Government
Entities, or Local Government Entities. |
|
Federal Government Entity: |
Any of the ministries,
public agencies and corporation, or other entities affiliated to the Federal Government. |
|
Local Government Entity: |
Any of the Government departments; public agencies
and corporations; councils; authorities, including the authorities
supervising Special Development Zones and free zones such as the Dubai International Financial
Centre; companies and corporations owned by the Government, or in which the
Government holds shares; or other entities affiliated to the Government. |
|
Judicial Authority: |
The competent judicial authority in the Emirate. |
|
Concerned Entities: |
Government Entities, and any other entities with
which the DESC may coordinate for the purpose of enabling it to exercise the
functions assigned to it and achieve the objectives of this Law. |
|
Charitable Association: |
Any sole proprietorship, or group which is organised
for a definite or indefinite term, comprising natural or legal person(s),
concerned in religious or charitable affairs, and which conducts its
activities in the Emirate, including religious or charitable foundations and
associations established or to be established under a law or decree. |
|
Informer: |
Any person who cooperates with the DESC or informs the
DESC of any matter that may compromise the economic security of the Emirate. |
|
Establishment: |
Any company or sole proprietorship licensed to
conduct an Economic Activity in the Emirate. This includes establishments
licensed to operate within Special Development Zones and free zones such as
the Dubai International Financial Centre. |
This Law will have
the following objectives:
1. to protect the standing of the Emirate
as an international financial and economic hub;
2. to enhance the financial
stability of the Emirate and protect its economy;
3. to protect the
investments of the Emirate against crimes that may harm the economy of the
Emirate;
4. to ensure the
implementation of the international best practices in the financial markets authorised
to operate in the Emirate;
5. to counter risks
that may face investors, and combat the activities that may harm financial
markets;
6. to predict economic
risks and phenomena that may affect the national economy and Public Funds in
the Emirate, and develop appropriate solutions thereto;
7. to boost the trust
of investors and financial institutions in the Emirate to encourage them to
take it as a hub for their business;
8. to ensure the
soundness of the financial rules, procedures, and operations in the Emirate;
and
9. to encourage
Concerned Entities to engage effectively in countering and combatting acts that
compromise economic security, and raising awareness among members of the
community about the threats such acts pose.
Pursuant to this Law, a public corporation named the "Dubai
Economy Security Centre" is established. The DESC will have legal
personality and the legal capacity required to undertake the acts and dispositions required for the
achievement of the objectives of this Law.
The head office of the DESC
will be located in the Emirate.
The following
entities are subject to the jurisdiction of the DESC:
1. Local Government
Entities;
2. entities which the
Government guarantees a minimum profit;
3. entities which
receive financial aid from the Government;
4. Establishments;
5. Charitable
Associations; and
6. any other entity which
is subject to audit by the DESC pursuant to a resolution of the Chairman of the
Executive Council.
The DESC is a
Government Entity concerned in economic security in the Emirate. The DESC will,
in coordination with Concerned Entities, have the duties and powers to:
1. combat corruption;
crimes of fraud, bribery, embezzlement, Public Funds abuse, counterfeiting,
forgery, money laundering, and financing terrorism or illegal organisations;
and other crimes that may be committed at the entities that are subject to the
jurisdiction of the DESC;
2. detect, analyse,
and curb the negative effects of, economic phenomena in the Emirate;
3. detect financial breaches
and violations committed in the Emirate;
4. monitor financial
markets and institutions, commercial sectors, and free zones in the Emirate;
5. monitor trading in
currencies, commodities, precious metals, and listed and unlisted
securities;
6. monitor donations
given and/or received by Charitable Associations;
7. monitor persons
and financial institutions to verify the funds and financial or cash
instruments flowing into or out of the Emirate;
8. prescribe the binding
rules and procedures prohibiting transactions with terrorists, terrorist
organisations, and any persons linked to terrorist organisations;
9. propose and review
the legislation regulating financial and economic affairs in the Emirate;
10. conduct
specialised studies on the financial and economic standing of the Emirate with
a view to increasing investment and economic awareness, and submit the relevant
necessary recommendations;
11. provide, upon
request, support and advice on economic security to entities that are subject
to the DESC jurisdiction, and offer relevant qualifying programmes for their
staff;
12. prepare special
reports on critical matters that affect economic security in the Emirate, and
present the same to the Chairman of the Executive Council;
13. prepare and
publish periodic reports and statistics on the financial and economic position of
the Emirate;
14. participate in councils,
committees, and work teams concerned in the financial and economic affairs of
the Emirate;
15. follow up, in
coordination with the Judicial Authority, the litigation proceedings related to
crimes that may affect the economy of the Emirate;
16. combat any untoward
activities, practices, and transactions that affect the economy and resources
of the Emirate;
17. follow up, in
coordination with the Judicial Authority, the cases that fall within the DESC
jurisdiction, including transnational crimes;
18. hold and
participate in conferences and symposia; cooperate with regional and
international organisations that are engaged in areas related to the work of the
DESC; and exchange knowledge, expertise, and courses on economic security; and
19. perform any other duties
required for the achievement of the objectives of this Law.
For the purpose of performing
its duties and functions under this Law, the DESC may seek assistance from
experts and specialists as it deems appropriate.
a.
The executive body of the DESC will comprise a CEO and
a number of administrative, finance, and technical employees.
b.
The rights, duties, and rules of selection and
appointment of the employees of the DESC will be determined pursuant to a human
resources regulation approved by the Chairman of the Executive Council.
c.
As of the effective date of this Law, the employees of
the DESC will continue to be governed by their employment contracts until the
human resources regulation referred to in paragraph (b) of this Article is
approved.
a.
A CEO will be appointed to the DESC by a resolution of
the Chairman of the Executive Council.
b. The CEO will supervise
the daily work and manage the business of the DESC, and represent it in its
relations with third parties and before the Judicial Authority. In particular,
the CEO will have the duties and powers to:
1.
develop, and supervise the implementation of, the
policies; strategic, development, and operational plans; initiatives; and
programmes, that are conducive to
achieving the objectives of this Law;
2.
propose the organisational structure of the DESC, and present
it to the Chairman of the Executive Council for approval;
3.
approve the resolutions and bylaws required to
regulate the administrative, financial, and technical work of the DESC, as well
as the resolutions and bylaws governing the DESC contracts, projects, and
bidding processes;
4.
prepare the draft annual budget and final accounts of
the DESC, and submit them to the competent entity in the Emirate for approval;
5.
supervise the work of the DESC executive body, and
appoint competent and specialised employees;
6.
prepare annual reports on the DESC performance, and
submit the same to the Chairman of the Executive Council;
7.
approve financial transactions subject to the
financial regulations and bylaws applicable to the DESC;
8.
sign, in the name and on behalf of the DESC,
contracts, agreements, and memoranda of understanding to which the DESC is a
party;
9.
follow up the performance by the DESC organisational
units of the duties assigned to them, and prepare periodic and annual reports
on work flow at these units;
10.
engage experts and consultants and determine their
remuneration in accordance with the bylaws applicable to the DESC; and
11.
perform any other duties assigned to him by the Chairman
of the Executive Council.
c.
The CEO may delegate any of his duties under paragraph
(b) of this Article to any of the DESC employees, provided that this delegation
is specific and in writing.
The financial
resources of the DESC will consist of:
1.
support allocated to the DESC in
the General Budget of the Government; and
2. any other resources approved
by the Chairman of the Executive Council.
a.
In regulating its accounts and records, the DESC will
apply the rules and principles of government accounting.
b.
The financial year of the DESC will commence on 1
January and will end on 31 December of each year, except that the first
financial year will commence on the day on which this Law comes into force and
will end on 31 December of the following year.
For purposes of
enabling the DESC to exercise its duties and powers under this Law, the DESC
will, in coordination with the Concerned Entities, have the authority to:
1.
monitor, examine, investigate, and collect information
by all means available;
2.
take preventive actions and measures;
3.
exchange information and data;
4.
conduct financial and administrative audit;
5.
detect the crimes and violations that fall within the
DESC jurisdiction pursuant to the provisions of this Law;
6.
request the General Prosecution to seize the funds,
property, instruments, documents, and any other items related to the illegal
act detected by the competent employees of the DESC;
7.
coordinate with the concerned international
institutions to access information and data related to investigations into the
acts committed outside of the UAE which may compromise economic security; and
8.
suspend dealings in securities markets or suspend the offering of any company’s stocks
or other securities for trading, in exceptional circumstances or upon the
occurrence of an event that jeopardises the proper flow and progress of work in
these markets; or freeze, suspend, or reinstate the enforcement of any bylaw or
regulation related to the financial market or any of its operations.
A DESC employee:
1.
must make a written disclosure of any securities owned
by him, his spouse, or minor children, and any shares that he, his spouse, or
minor children, own in any financial institution, and must undertake to declare
in writing any change to the same no later than one (1) week from becoming
aware of this change;
2.
must maintain the confidentiality of the information
and data to which he has access or of which he becomes aware by virtue of his position
in the DESC; and
3.
must not, without first obtaining the relevant written
consent of the DESC, disseminate, divulge, disclose or transfer to any person
or entity any information or data, or retain any confidential instrument or
document, which is related to the DESC or the entities subject to its
jurisdiction, or which has become accessible or known to him by virtue of his
position. The DESC employee will remain bound by the confidentiality obligation
even after the end of his service with the DESC.
The DESC may neither conduct
any commercial or banking business, nor
perform any profit-generating activities, nor hold an interest in any
enterprise.
For purposes of research and investigation, and of exercising its functions under this Law, the DESC may, in coordination with the Concerned Entities, request detailed statements of the accounts, funds, and banking movements of any natural or legal person, and request disclosure of the financial liabilities of such person. The Concerned Entities must fully cooperate with the DESC in this respect.
a.
The DESC will provide the necessary protection for
Informers. This includes:
1.
providing
protection for the Informer at his place of residence;
2.
not
disclosing any information related to the Informer’s identity or whereabouts;
and
3.
protecting
the Informer at his workplace and ensuring that he is not subjected to
discrimination or ill treatment.
b.
For purposes of this Law, informing the DESC of
matters that may compromise the economic security of the Emirate may not be deemed
as a violation of the provisions of legislation and agreements related to
divulging or disclosing confidential information of the entity by which the
Informer is employed or with which he deals.
c.
The freedom, security, and protection of the Informer
are guaranteed under the provisions of this Law and the legislation in force in
the Emirate. Except in the case of false reporting, no legal or disciplinary
action may be taken against the Informer.
All the data and information
provided by the entities that are subject to the DESC jurisdiction are deemed confidential. The DESC, its employees, and all persons dealing
with it may not grant third parties access to this data or information, disclose it,
or use it for other than its designated purposes.
a.
Without prejudice to any stricter penalty prescribed by any other legislation:
1.
any person who discloses
any information or data deemed confidential under this Law will be punished by
imprisonment for not less than three (3) months and not more than one (1) year,
and by a fine not exceeding fifty thousand Dirhams (AED 50,000.00); and
2.
any person who violates the
provisions of this Law and the resolutions issued in pursuance hereof will be
punished by a fine of not less than ten thousand Dirhams (AED 10,000.00) and
not more than five hundred thousand Dirhams (AED 500,000.00).
b.
The Chairman of the Executive Council will issue a
resolution determining the acts that constitute administrative violations of
the provisions of this Law and the fine prescribed for each violation.
Employees of the DESC nominated pursuant to a resolution issued by the
CEO will have the capacity of law enforcement officers to record the acts
committed in breach of the provisions of this Law and the resolutions issued in
pursuance hereof. For this purpose, they may issue the relevant violation
reports and, where necessary, seek assistance from police personnel and
Concerned Entities.
a.
All individuals and Concerned Entities must cooperate
with the DESC; accommodate its requests in accordance with the provisions of
this Law; provide it with all support to enable it to exercise its functions,
powers, and authorities; and not obstruct exercising the same.
b.
Where necessary, the DESC may, if the CEO or any of
the competent employees is prevented by those to whom this Law applies from
performing his duties under the law, request the Judicial Authority to place
under seizure the data, information, cabinets, boxes, equipment, or places
where the required items or data are kept.
The CEO will issue the
resolutions required for the implementation of the provisions of this Law.
Any provision in any
other legislation will be repealed to the extent that it contradicts the
provisions of this Law.
This Law will be
published in the Official Gazette and will come into force on the day on which
it is published.
Mohammed bin Rashid Al Maktoum
Ruler of Dubai
Issued in Dubai on 18 April 2016
Corresponding to 11 Rajab 1437 A.H.
©2016 The Supreme Legislation Committee in the
Emirate of Dubai
[1] Every effort has been made to produce an accurate and complete English
version of this legislation. However, for the purpose of its interpretation and
application, reference must be made to the original Arabic text. In case of
conflict the Arabic text will prevail.