Legislation Details
- Full Title: Federal Law by Decree Concerning the Emirates Accountability Authority
- Law Type: Federal Law by Decree
- Law Number: [56] of 2023
- Issued Date: 02 Oct 2023
- Effective Date: 31 Oct 2023
- Official Gazette: No. 762
- Sector: Government Affairs
- Status: Active
- Number of Articles: 94
- Chapters/Parts: 0
- Amendments: 0
Summary
This Federal Law by Decree establishes the Emirates Accountability Authority, the supreme body for financial control, accounting, integrity, and transparency in the United Arab Emirates. The law aims to strengthen control over public funds, combat financial and administrative corruption, and promote principles of integrity, transparency, and accountability in the government and regulated entities. The Authority enjoys legal personality, financial and administrative independence, and reports directly to the President of the UAE. (Federal Law by Decree Concerning the Emirates Accountability Authority, 2023, Art. 2-3) The law is significant for businesses and individuals in the UAE, as it empowers the Authority to audit and investigate the financial, accounting, and operational activities of regulated entities to ensure efficiency, effectiveness, and optimal use of public resources. It also establishes mechanisms to detect, address, and hold perpetrators of financial and administrative corruption accountable, which is crucial for maintaining the UAE's reputation and confidence in its financial and economic system. (Federal Law by Decree Concerning the Emirates Accountability Authority, 2023, Art. 3)
What is the scope and purpose of this law?
The law establishes the Emirates Accountability Authority as the supreme body for financial control, accounting, integrity, and transparency in the UAE. The Authority enjoys legal personality, financial and administrative independence, and reports directly to the President of the UAE. The law aims to strengthen control over public funds, combat financial and administrative corruption, and promote principles of integrity, transparency, and accountability in the government and regulated entities. (Federal Law by Decree Concerning the Emirates Accountability Authority, 2023, Art. 2-3)
What are the key definitions under this law?
The law provides the following key definitions:
- State: United Arab Emirates
- President of the State: President of the United Arab Emirates
- Union: Union of the Emirates of the State
- Government: Government of the United Arab Emirates
- Authority: Emirates Accountability Authority
- Competent Authorities: Sovereign, judicial, regulatory, police, security, and other entities and committees affiliated with the Government of the State or the Government of other Emirates
- Regulated Entities: Entities subject to the Authority's control in accordance with the provisions of this law
- Chairman of the Authority: Vice-Chairman of the Emirates Accountability Authority
- Vice-Chairman: Vice-Chairman of the Authority
- General Managers: The Authority's General Managers
- Executive Management: Agents, General Managers, and executive directors of Regulated Entities
- Senior Officials: Ministers and senior federal employees appointed by Federal Decrees
- Minister: A member of the Cabinet, the Minister of State, and those appointed to the rank of Minister
- Official: Senior federal employee of the Federal Government appointed by Federal Decrees
- Officials of the Regulated Entities: Executive management employees, chairmen and members of boards of trustees and boards of directors, those responsible for governance, members of executive departments and the like in Regulated Entities
- Employee: Anyone who occupies a position or is assigned to a public service in Entities subject to the Authority's Control without the category of Senior Officials
- Public Position: Any federal job, whether legislative, executive, supervisory, or administrative, which includes carrying out the duties of public authority
- Private Business: Financial, commercial, or professional work, membership in boards of directors, work for others or the like, whether with or without pay
- Control: The works stipulated in this law related to audit, review, examination, evaluation, inspection, investigation and analysis of the accounts of the Regulated Entities
- Control Laws: Governance and internal control systems related to the financial, accounting, administrative and operational systems and activities and information systems of the Regulated Entities
- Financial and Administrative Violations: Violations in accordance with the provisions of this law
- Financial and Administrative Corruption: Any act that shall be considered a financial or administrative violation in accordance with the provisions of this law
- Auditor: The natural or legal person registered in accordance with the provisions of Federal Law No. 12 of 2014 concerning the Regulation of the profession of Auditors
- Internal Auditor: The employee responsible for supervising internal audit work and preparing and signing internal audit reports
- Reporter: The natural or legal person who cooperates with the Authority or any of the Regulated Entities or other Competent Authorities
- Witness: A person who gives testimony based on knowledge, or claims to know or see certain facts or data
(Federal Law by Decree Concerning the Emirates Accountability Authority, 2023, Art. 1)
What are the main obligations and requirements?
The law imposes the following key obligations: 1. The Authority is required to control the financial, accounting, and operational activities in Regulated Entities to ensure their efficiency, effectiveness, economy, and optimal use of public resources. (Federal Law by Decree Concerning the Emirates Accountability Authority, 2023, Art. 3(1)) 2. The Authority is tasked with combating financial and administrative corruption and establishing general principles to enhance the management of corruption risks, detect it, address its causes, and hold its perpetrators accountable. (Federal Law by Decree Concerning the Emirates Accountability Authority, 2023, Art. 3(2)) 3. The Authority is responsible for promoting and consolidating the principles of integrity, transparency, accountability, and sound management practices in the government and Regulated Entities. (Federal Law by Decree Concerning the Emirates Accountability Authority, 2023, Art. 3(3)) 4. The Authority is required to improve the quality of audit work provided to Regulated Entities in the UAE. (Federal Law by Decree Concerning the Emirates Accountability Authority, 2023, Art. 3(4))
Which authorities or bodies are responsible for enforcement?
The law establishes the following authorities and bodies responsible for the enforcement of its provisions: 1. The Emirates Accountability Authority is the supreme body for financial control, accounting, integrity, and transparency in the UAE. It enjoys legal personality, financial and administrative independence, and reports directly to the President of the UAE. (Federal Law by Decree Concerning the Emirates Accountability Authority, 2023, Art. 2(1)) 2. The Chairman of the Authority is responsible for managing the Authority's affairs, including preparing the draft budget, managing and implementing the Authority's budget, and approving secret expenditures. (Federal Law by Decree Concerning the Emirates Accountability Authority, 2023, Art. 5(2)) 3. The Authority's General Managers are responsible for overseeing the Authority's various sectors, such as the Control and Audit Sector and the Integrity and Anti-corruption Sector. (Federal Law by Decree Concerning the Emirates Accountability Authority, 2023, Art. 18, 21) 4. The Competent Authorities, which include sovereign, judicial, regulatory, police, security, and other entities and committees affiliated with the Government of the UAE or the Government of other Emirates, are required to cooperate with the Authority. (Federal Law by Decree Concerning the Emirates Accountability Authority, 2023, Art. 37)
What are the penalties for non-compliance?
The law specifies the following penalties for non-compliance: 1. Punishment for confidential disclosure: Any person who discloses confidential information obtained through their work with the Authority shall be punished with imprisonment for a period not exceeding one year and a fine not exceeding AED 100,000, or either of these two penalties. (Federal Law by Decree Concerning the Emirates Accountability Authority, 2023, Art. 39) 2. Penalty for obstructing the work of Authority employees: Any person who obstructs the work of Authority employees or prevents them from performing their duties shall be punished with imprisonment for a period not exceeding one year and a fine not exceeding AED 100,000, or either of these two penalties. (Federal Law by Decree Concerning the Emirates Accountability Authority, 2023, Art. 40) The law does not specify any other penalties for non-compliance.
When did this law come into effect?
This Federal Law by Decree Concerning the Emirates Accountability Authority came into effect on 31 October 2023, as stated in Article 43. (Federal Law by Decree Concerning the Emirates Accountability Authority, 2023, Art. 43)
How does this law interact with other UAE legislation?
The law references the following related UAE legislation: 1. The Constitution of the United Arab Emirates 2. Federal Law No. (1) of 1972 Concerning the Jurisdictions of Ministries and Powers of Ministers, as amended 3. Federal Law No. (8) of 2011, which established the Audit Institution. The Emirates Accountability Authority is considered the legal successor to the Audit Institution, and all its rights, assets, and obligations have been transferred to the Authority. (Federal Law by Decree Concerning the Emirates Accountability Authority, 2023, Art. 2(2)) 4. Federal Law No. 12 of 2014 concerning the Regulation of the profession of Auditors, which is referenced in the definition of "Auditor" under this law. (Federal Law by Decree Concerning the Emirates Accountability Authority, 2023, Art. 1) The law does not specify any other interactions with other UAE legislation.
Source Documents
This article analyses Federal Law by Decree Concerning the Emirates Accountability Authority for legal research and educational purposes. For the purpose of interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text prevails. This does not constitute legal advice.