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The United Arab Emirates signed the United Nations Convention against Corruption on August 10, 2005 and ratified it on February 22, 2006. The Convention became a part of domestic law after its ratification.
of the United Arab Emirates; Anti corruption legal framework; Including:;
At present, the United Arab Emirates does not have specific laws against commercial bribery. Anti corruption related laws and regulations are scattered in the 1971 Constitution, the Criminal Code (Federal Law No. 3 of 1987, amended in 2005 and 2006), Federal Law No. 35 of 1992 on the Criminal Procedure Law, and Federal Law No. 11 of 1992 on the Civil Procedure Law.
Other relevant specific laws include:;
Federal Law No. 4 of 2002 on the criminalization of money laundering; Federal Law No. 5 of 1985 on Civil Transactions; Federal Law No. 8 of 2011 on the Restructuring of National Audit Institutions; Federal Law No. 11 of 2008 on Human Resources Issues in the Federal Government; Federal Law No. 10 of 1973 on the Supreme Court of the United States; Federal Law No. 3 of 1983 on Federal Judicial Personnel; Federal Law No. 39 of 2006 on Judicial Cooperation in International Criminal Matters.
The institutions participating in anti-corruption policies or performing anti-corruption functions are as follows:;
Ministry of Justice, Ministry of Interior, Ministry of Foreign Affairs, and Ministry of Finance; Prosecutor's Office; National audit institutions; Central bank.
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2、 Regulation and Punishment;
（1） Public bribery;
Definition of Bribery;
According to the Criminal Law, bribery refers to any act of providing benefits to public or private sector employees (depending on the situation) with the aim of influencing these employees to act in a manner that violates their duties, or to carry out or refrain from carrying out a certain act.
Definition of Public Officials;
Regarding the definition of public officials, Article 5 of the Criminal Code stipulates:; ldquo; According to this law, any person holding a legislative, executive, managerial, or judicial position at the federal or local level, whether appointed by election, is considered a public official:;
- Any person responsible for carrying out the work of the main authority and various ministries and government departments;
- Members of the Armed Forces;
- Security department employees;
- Members of the judiciary, heads of the Legislative Council, advisory committees, and municipal councils, and their members;
- Any person appointed by a public authority to perform specific work within a designated scope of work;
- The chairman, directors, managers, and all employees of public institutions, public enterprises, and companies wholly or partially owned by federal or local governments;
- The chairman, directors, managers, and all employees of public associations and public welfare institutions;
According to this law, any individual who does not belong to the category mentioned in the preceding paragraph and is authorized by laws and regulations to perform duties related to public officials shall also be considered as entrusted to perform public duties, but the individual shall only be considered a public official within the scope of their authorized duties. & rdquo;
The consequences of bribery;
(a) For individuals involved in the case;
According to the severity of the crime, any public official convicted of bribery related offenses (providing, accepting, or promising bribes) will be fined an amount equivalent to the benefits received (the fine shall not be less than 5000 dirhams); Confiscate the actual benefits received; And according to the circumstances of each case, the sentence shall not exceed five years of imprisonment. In addition, individuals convicted of accepting bribes to influence public officials will be sentenced to up to five years in prison.
(b) For companies/legal entities;
Entities may also be held accountable, as long as they; ldquo; Inaction& rdquo; Whether with or without knowledge, it led to the occurrence of the bribery involved. Article 65 of the Criminal Law stipulates that a legal person shall be responsible for any criminal acts committed by its representatives, directors, or agents on behalf of its account or in its name. In this case, the court can only impose fines, confiscation, and other criminal measures prescribed by law on the legal person. However, if criminal sanctions involve other major sanctions in addition to fines, only fines (not exceeding 500000 dirhams) shall apply. The above provisions do not affect other special laws that prescribe different sanctions.
The civil liability stipulated in Article 5 of the 1985 Civil Transactions Law discusses the employer's alternative liability in this regard.
Despite the above provisions, in practice, courts will review cases on a case by case basis and impose corresponding penalties on responsible employees/entities. In this regard, prosecutors have broad discretion, which may lead to inconsistencies between law enforcement and punishment.
Political donations;
There are no political parties in the UAE, and public officials are appointed by the government itself or the rulers of each emirate.
Restrictions applicable to hospitality expenses (gifts, travel, dining, entertainment, etc.);
The United Arab Emirates does not have legal standards for commercial hospitality. However, when providing commercial benefits to public officials, the following factors should be carefully considered:;
(1) The value of such commercial benefits is;
(2) Provide frequency;
(3) The purpose of providing these items;
(4) The relevance of such gifts/hospitality to both recipients and providers;
（2） Private bribery;
Definition of Private Bribery;
Regarding bribery by individuals in the private sector, Article 236-2 of the Criminal Law stipulates that only soliciting, accepting, or promising bribes (benefits) in exchange for their violation of their duties or inaction will constitute a crime under the Criminal Law. In this case, the Criminal Law defines the recipient as any manager or employee of a private sector company.
The consequences of private bribery;
(a) For individuals involved in the case;
Individuals who solicit, accept, or promise bribes in the private sector will be fined an amount equivalent to the benefits they have received (a fine of not less than 5000 dirhams), have the actual benefits confiscated, and sentenced to imprisonment for no more than five years.
Law No. 7 of 2016 on Article 236 of the Criminal Law; II; Revised to facilitate the prosecution of bribery in the private sector, stipulating that bribe givers will also be considered as criminals.
(b) For companies/legal entities;
Entities can also be held accountable, as long as they; ldquo; Inaction& rdquo; Whether with or without knowledge, it led to the occurrence of the bribery involved. Article 65 of the Criminal Law stipulates that a legal person shall be responsible for any criminal acts committed by its representatives, directors, or agents on behalf of its account or in its name. In this case, the court can only impose fines, confiscation, and other criminal measures prescribed by law on the legal person. However, if criminal sanctions involve other major sanctions in addition to fines, only fines (not exceeding 500000 dirhams) shall apply. The above provisions do not affect other special laws that prescribe different sanctions.
The civil liability stipulated in Article 5 of the 1985 Civil Transactions Law discusses the employer's alternative liability in this regard.
Despite the above provisions, in practice, courts will review cases on a case by case basis and impose corresponding penalties on responsible employees/entities. In this regard, prosecutors have broad discretion, which may lead to inconsistencies between law enforcement and punishment.
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3、 Corporate compliance recommendations;
(1) Conduct a comprehensive anti-corruption risk assessment and inspect various institutions of the company. Expose weaknesses that may lead to corruption risks and compliance issues, and develop compliance plans.
(2) When setting up anti fraud and anti-corruption risk management processes, investigate any new mergers, acquisitions, and partnerships, regularly plan audits, and implement anonymous reporting systems.
(3) Built in review process, improving and standardizing internal review institutions to ensure their integrity and honesty.
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Reference citation:;
1. Strategy Research | Anti Corruption Compliance Guidelines for Outbound Investment Compliance Guidelines;
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