Awatif Mohammad Shoqi Advocates & Legal Consultancy | View firm profile
Senior administration, HR team, and consistence faculty of all enterprises and in a wide industry are approached against consistently with proof or charges of potential bad behavior at their organizations. These situations may extend from warning from the government for examination concerning claims of infringement of any government law by the partners or senior executives to a routine internal complaints of infringement of the worker policy or any other policies or rules established by the organization.
In many examples, the organization would be best served by directing some sort of inward examination concerning the charges. Be that as it may, choosing whether and how to direct an internal examination requires thought of an assortment of elements. Such factors regularly incorporate the nature of the organization, the particular lead or subject matter at issue, the material law, and, where suitable, the administration’s authorization needs. What’s more, in the occasion an inside examination is attempted, there are a number of choices that ought to be made at the beginning, including who should direct the examination, the objectives and parameters of the survey, and whether a report shall be composed or an oral warning shall be issued to the concerned.
Internal investigations are turning into an undeniably significant hazard management apparatus. While typically a reality discovering exercise, they likewise have a fundamental impact in an organization’s consistence with administrative commitments. Internal investigations are a decent method of building up to see potential dangers to the organization, regardless of whether they are moral or legitimate, and can uncover potential crook, common or administrative obligation. Therefore, Corporate Lawyers of Dubai have the urge to discuss the laws concerning internal investigations in UAE.
UAE law on Internal Investigations
In the event, the company is willing to conduct an internal investigation, Corporate Lawyers of Dubai suggest to consider several factors such as the following:
- Whether conducting such investigation is a requisite of the law;
- The severity of the violation or the misconduct;
- Whether such violation leads to infringement of any legislation in the country;
- Consequences of such investigation or benefits to the organization, if such investigation was conducted.
There is no specific law introduced by UAE and many other countries governing especially the subject of internal investigation as it majorly depends upon the type of misconduct and for that matter there are several provisions in different laws issued by the government in relation to the potential crimes that may be committed by the corporate organization or its employees. Having said that, UAE has issued Federal Law number 19 of 2016 (the Commercial Fraud Law) ensuring stricter penalties for natural or legal person attempted or actually committed corporate fraud. In addition, the country has issued Federal Law number 20 of 2018 (combatting money laundering and financial terrorism) as recently amended. Furthermore, to cover all other basic corporate crimes, the country has Federal Law number 2 of 1987 (the Penal Code) and Federal Law number 35 of 1992 (the Criminal Procedures Law).
Moreover, the country has certain specific free zones allowed to issue their tailor made corporate laws including DIFC and ADGM, however, the criminal laws are still applicable on the companies registered within these free-zones.