Lex Mundi Global Anti-Corruption Compliance Guide |
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United Arab Emirates |
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(Middle East)
Firm
Afridi & Angell
Contributors
Charles Laubach |
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| What is the key anti-bribery and corruption legislation in your jurisdiction? | The key anti-corruption legislation in the UAE is the Federal Penal Code of the UAE, Federal Law No. 3 of 1987. However, there are many other statutes and regulations that contain anti-corruption provisions that relate to certain sectors of the economy. These include the following: Anti-Corruption Prohibitions
Conflict of Interest Prohibitions
Tenders Regulations
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| Has there been a specific anti-bribery and corruption law enacted in your jurisdiction in the last ten years? | Yes. Amendments to the Federal Penal Code ("Penal Code") have been enacted in the past ten years that have extended the anti-bribery prohibitions of the Penal Code to private sector bribery, and officials of international organizations and to officials of foreign governments, and have introduced enhanced penalties. |
| Is a bribe payment to domestic government officials prohibited by the legislation? | Yes, this is prohibited by Article 237 of the Federal Penal Code. |
| Is a bribe payment to foreign government officials prohibited by the legislation? | Yes, this is prohibited by the same provision of the Federal Penal Code, Article 237. |
| Is requesting or accepting a bribe prohibited by the legislation? | Yes, it is prohibited for a person to request, accept or receive a bribe. |
| Who is subject to the legislation? | The Federal Penal Code applies to a public official or any person charged with public service, which can mean a person who is temporarily engaged in the performance of official duties. Recent amendments to the Federal Penal Code have deemed arbitrators, experts and investigators to be public officials within the confines of the tasks entrusted to them. The Federal Penal Code also applies to foreign officials and to officials of international organizations. It also applies in the private sector, meaning that the offer, promise or giving of a bribe to an official of a private company (or the solicitation, acceptance or receipt of the same by such official) would likewise be prohibited. Many other specific prohibitions apply in specific sectors of the economy, as noted in the answer to "What is the key anti-bribery and corruption legislation in your jurisdiction?". |
| Is there criminal liability for corporate entities who have either paid or accepted a bribe payment? | Yes, corporate persons could be held liable for corrupt activity. A corporate person could generally be subject to fines. The individual employees of the corporate person who directly engaged in the prohibited activity could also be subject to fines and imprisonment if convicted. |
| What is the penalty for individuals violating the law? | The penalties for bribery offenses under the Federal Penal Code include fines and imprisonment. A fine in the amount of the prohibited payment that was offered (provided that the fine not be less than AED 5,000) could be imposed, along with confiscation of the prohibited funds. A person who solicits a bribe could be subject to imprisonment (with the term thereof left to the discretion of the court), while a person who offers a bribe could be subject to imprisonment for up to five years. |
| Assuming corporate entities are liable for violating the legislation, what is the penalty for corporate entities violating the law? | A corporate entity could be potentially subjected to the fine stated above. |
| Assuming corporate entities are liable for violating the legislation, does having a compliance program designed to prevent bribery constitute a defense? | A corporate entity that is indicted for a corruption offense would normally assert that the individual that engaged in the corrupt activity in question was not authorized by the corporation to engage in such corrupt activity on the corporation’s behalf. The compliance program would be one item of evidence that the corporate entity would adduce to show that the individual acted outside the scope of his power to act on behalf of the corporation. |
| Assuming corporate entities are liable for violating the anticorruption law, is it possible for a corporate entity to reach a deferred prosecution agreement or leniency agreement with the enforcement authorities? | In theory, a deferred prosecution agreement or leniency agreement would be possible. However, in practice, law enforcement authorities in the UAE do not agree to defer prosecution. |
Lex Mundi Global Anti-Corruption Compliance Guide
United Arab Emirates
(Middle East) Firm Afridi & AngellContributors Charles Laubach
Updated 27 Feb 2020The key anti-corruption legislation in the UAE is the Federal Penal Code of the UAE, Federal Law No. 3 of 1987.
However, there are many other statutes and regulations that contain anti-corruption provisions that relate to certain sectors of the economy. These include the following:
Anti-Corruption Prohibitions
- Dubai Penal Code of 1970
- Armed Forces Law, Federal Law No. 8 of 2006
- Armed Forces Tenders Regulations, Resolution No. 12 of 1986 of the Deputy Supreme Commander of the UAE Armed Forces
Conflict of Interest Prohibitions
- UAE Constitution, Article 62
- Federal Civil Service Statute, Federal Decree Law No. 11 of 2018
- Law on Diplomatic and Consular Corps, Federal Decree Law No. 9 of 2018
- Dubai Civil Service Statute
- Dubai Law No. 27 of 2006
- Federal Decree Law No. 5 of 2011 regarding the organization of boards of directors, trustees and committees in the federal government
- Cabinet Resolution No. 29 of 2011
Tenders Regulations
- Federal Tenders Regulations, Cabinet Resolution No. 32 of 2014
- Armed Forces Tenders Regulations, Resolution No. 12 of 1986 of the Deputy Supreme Commander of the UAE Armed Forces
- Abu Dhabi Tenders Law, Abu Dhabi Law No. 6 of 2008
- Dubai Tenders Law, Dubai Law No. 6 of 1997
Yes. Amendments to the Federal Penal Code ("Penal Code") have been enacted in the past ten years that have extended the anti-bribery prohibitions of the Penal Code to private sector bribery, and officials of international organizations and to officials of foreign governments, and have introduced enhanced penalties.
Yes, this is prohibited by Article 237 of the Federal Penal Code.
Yes, this is prohibited by the same provision of the Federal Penal Code, Article 237.
Yes, it is prohibited for a person to request, accept or receive a bribe.
The Federal Penal Code applies to a public official or any person charged with public service, which can mean a person who is temporarily engaged in the performance of official duties. Recent amendments to the Federal Penal Code have deemed arbitrators, experts and investigators to be public officials within the confines of the tasks entrusted to them. The Federal Penal Code also applies to foreign officials and to officials of international organizations. It also applies in the private sector, meaning that the offer, promise or giving of a bribe to an official of a private company (or the solicitation, acceptance or receipt of the same by such official) would likewise be prohibited.
Many other specific prohibitions apply in specific sectors of the economy, as noted in the answer to "What is the key anti-bribery and corruption legislation in your jurisdiction?".
Yes, corporate persons could be held liable for corrupt activity. A corporate person could generally be subject to fines. The individual employees of the corporate person who directly engaged in the prohibited activity could also be subject to fines and imprisonment if convicted.
The penalties for bribery offenses under the Federal Penal Code include fines and imprisonment. A fine in the amount of the prohibited payment that was offered (provided that the fine not be less than AED 5,000) could be imposed, along with confiscation of the prohibited funds. A person who solicits a bribe could be subject to imprisonment (with the term thereof left to the discretion of the court), while a person who offers a bribe could be subject to imprisonment for up to five years.
A corporate entity could be potentially subjected to the fine stated above.
A corporate entity that is indicted for a corruption offense would normally assert that the individual that engaged in the corrupt activity in question was not authorized by the corporation to engage in such corrupt activity on the corporation’s behalf. The compliance program would be one item of evidence that the corporate entity would adduce to show that the individual acted outside the scope of his power to act on behalf of the corporation.
In theory, a deferred prosecution agreement or leniency agreement would be possible. However, in practice, law enforcement authorities in the UAE do not agree to defer prosecution.