His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, issued Law No (4) of 2016 on the Dubai Economic Security Centre.
The centre seeks to ensure that Dubai is able to still hold its position as an international financial and economic hub and safeguard investments from situations that may disrupt the economy.
The new Law will make sure that Dubai is protected from anything that might jeopardise the stability of the financial market and its economy by predicting and managing any form of risk or negative economic trend.
It will also try to encourage and increase investors trust in the emirates financial markets so that they will conduct more of their businesses in Dubai. The law will ensure this by showcasing the integrity of all their procedure in terms of the financial operations, have market players increase their defensives to make sure nothing depletes the economic security and increase awareness so that others can easily deal with such activities that might be harmful.
The roles and responsibilities of the Dubai Economic Security Centre are also defined by the new law. Some of which include:
- Destruction of public property
- Money laundering
- Terrorism financing
- Illegal organisations
- Battling corruption
The Entities under the jurisdiction of the Centre’s are local government that are given a minimum profit by the government or funded by the government, any company licensed to engage in any form of economic activity in the emirate. Other entities can be monitored by the Centre such as charities working in the emirate or other institutions if the Chairman of Dubai Executive Council says so.
The law will enable the centre to monitor various aspects in the emirate to reduce any negative impacts that may unfold by these activities. They are able to monitor abuses, financial irregularities, financial markets, institutions, commercial sectors and free zones in Dubai.
The Dubai Economic Security Centre is also tasked with formulating studies on the financial and economic affairs of Dubai so that they can spread awareness on investments and the economy. They also will provide forms of support on the economic security of entities under its jurisdiction such as training programmes and preparing reports on the factors that are affecting the economic security that are to be submitted to the Chairman of the Dubai Executive Council.
As per the new law, the Centre is required to be staffed with a number of administrative, financial and technical employees as well as an Executive Director that will be selected by the Chairman of the Dubai Executive Council. The law will specify all the roles of these staff members.
The Centre will also have the ability to work with other authorities to carry out its responsibilities in terms of monitoring, research, analysis, gathering information, taking precautionary measures, data and information exchange, financial and administrative auditing, and recording crimes and offences with the permission of the Law.
Providing any information on issues affecting the economic security will not be considered a violation. They only way a person will be subject to any legal or disciplinary actions will be if they provide any falsified information on such matters. However, information that is made confidential and disclosed of could lead to a maximum of 1 year and a minimum of 3 months of imprisonment will a fine of Dh10, 000 to Dh50, 000. A fine of minimum Dh10, 000 and a maximum of Dh500, 000 will be placed on anyone who violates the requirements of this law.
The new law will be published in the Official Gazette and expects concerned individuals and entities to openly cooperate with the Centre so that they can fulfil their duty without running into any interference.