Anti-Corruption Regulation 2010 - United Nations track.unodc.org/LegalLibrary/LegalResources/United Arab Emirates...Overview Homer E Moyer Jr Miller Chevalier ... United Arab Emirates Charles Laubach and Aly Shah Afridi ... Anti-Corruption Regulation 2010 United Arab Emirates

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<ul><li><p>Anti-Corruption Regulationin 46 jurisdictions worldwide</p><p>Contributing editor: Homer E Moyer Jr </p><p>2010Published by </p><p>Getting the Deal Throughin association with:</p><p>A&amp;L Goodbody Afridi &amp; Angell</p><p>Amir &amp; Amir Law AssociatesAnderson Mo- ri &amp; Tomotsune</p><p>Astigarraga Davis AZB &amp; Partners</p><p>Badri and Salim El Meouchi Law FirmBarbosa Abogados</p><p>Benites, Forno &amp; Ugaz, Ludowieg-Andrade AbogadosBennett Jones LLP</p><p>Carrillo &amp; AsociadosDr Kai Hart-Hnig RechtsanwlteFeinzaig Scharf &amp; van der Putten</p><p>Hoet Pelez Castillo &amp; Duque AbogadosIvanyan &amp; PartnersJimnez Cruz Pea</p><p>Kim &amp; ChangKLA Koury Lopes Advogados</p><p>Kleyr Grasso AssocisKoep &amp; Partners</p><p>Lampert &amp; Schchle Attorneys at Law LtdLebray &amp; AssocisLim A Po Law Firm Makarim &amp; Taira S</p><p>Mboya &amp; Wangongu AdvocatesMiller &amp; Chevalier Chartered</p><p>MNB Legal Practitioners Monard DHulst</p><p>NautaDutilh NVNicolette M Doherty Attorney at Law and Notary Public</p><p>OMelveny &amp; Myers LLPPaz Horowitz, Abogados</p><p>Peters &amp; PetersPRK Partners</p><p>Rubio Villegas y Asociados SCRussin &amp; Vecchi </p><p>Saxinger Chalupsky &amp; PartnersSchellenberg Wittmer</p><p>SetterwallsSofunde, Osakwe, Ogundipe &amp; Belgore</p><p>Stevenson, Wong &amp; CoStudio Legale Pisano</p><p>The Law Firm of Salah Al-HejailanTransparency International</p><p>V&amp;P Law FirmVicheka Lay</p><p>Wardynski &amp; Partners</p></li><li><p>The Global Report on Corruption and the Private Sector: A Commentary Monty Raphael Trustee and member of the board, Transparency International UK 3</p><p>Overview Homer E Moyer Jr Miller &amp; Chevalier Chartered 5</p><p>Antigua &amp; Barbuda Edward H Davis Jr and Arnoldo B Lacayo Astigarraga Davis Nicolette M Doherty Nicolette M Doherty Attorney at Law and Notary Public 10</p><p>Argentina Adalberto Ramiro Barbosa and Patricio OReilly Barbosa Abogados 14</p><p>Austria Christina Hummer Saxinger Chalupsky &amp; Partners 19</p><p>Bangladesh M Amir-Ul Islam Amir &amp; Amir Law Associates 24</p><p>Belgium Christiaan Barbier Monard DHulst 30</p><p>Brazil Isabel C Franco KLA Koury Lopes Advogados 35</p><p>Cambodia Vicheka Lay 40</p><p>Canada Milos Barutciski Bennett Jones LLP 43</p><p>China Nathan G Bush OMelveny &amp; Myers LLP 48</p><p>Costa Rica Gabriela Goebel Prestinary Feinzaig Scharf &amp; van der Putten 54</p><p>Czech Republic Daniela Musilova and Lucia Zachariasova PRK Partners 58</p><p>Dominican Republic Marcos Pea-Rodrguez and Carmen Amaro Bergs Jimnez Cruz Pea 64</p><p>Ecuador Bruce Horowitz Paz Horowitz, Abogados 68</p><p>France Stphane Bonifassi Lebray &amp; Associs 71</p><p>Germany Kai Hart-Hnig Dr Kai Hart-Hnig Rechtsanwlte 76</p><p>Greece Ioanna Anastassopoulou and Alexandra Mitsokali V&amp;P Law Firm 81</p><p>Guatemala Alfonso Carrillo M and Alfonso Carrillo M Jr Carrillo &amp; Asociados 87</p><p>Hong Kong Angus Forsyth Stevenson, Wong &amp; Co 91</p><p>India Vineetha M G and Aditya Vikram Bhat AZB &amp; Partners 95</p><p>Indonesia Richard Cornwallis and Benny Bernarto Makarim &amp; Taira S 103</p><p>Ireland Joe Kelly and Katie Byrne A&amp;L Goodbody 108</p><p>Italy Roberto Pisano Studio Legale Pisano 116</p><p>Japan Kenichi Sadaka, Koya Uemura and Emi Sakai Anderson Mo- ri &amp; Tomotsune 122</p><p>Kenya Godwin Wangongu Mboya &amp; Wangongu Advocates 127</p><p>Korea Kyungsun Kyle Choi and Kyo-Hwa Liz Chung Kim &amp; Chang 132</p><p>Lebanon Jihad Rizkallah, Karen Malek and Marie-Anne Jabbour Badri and Salim El Meouchi Law Firm 137</p><p>Liechtenstein Siegbert A Lampert Lampert &amp; Schchle Attorneys at Law Ltd 143</p><p>Luxembourg Rosario Grasso Kleyr Grasso Associs 148</p><p>Mexico Luis Rubio-Barnetche, Bertha A Ordaz-Avils and Carlos A Camargo-Tovar Rubio Villegas y Asociados SC 154</p><p>Namibia Peter Frank Koep and Hugo Meyer van den Berg Koep &amp; Partners 158</p><p>Netherlands Bert A Fibbe NautaDutilh NV 162</p><p>Nigeria Babajide O Ogundipe and Chukwuma Ezediaro Sofunde, Osakwe, Ogundipe &amp; Belgore 166</p><p>Peru Jos Ugaz Snchez-Moreno Benites, Forno &amp; Ugaz, Ludowieg-Andrade Abogados 170</p><p>Poland Janusz Tomczak Wardynski &amp; Partners 174</p><p>Russia Khristofor Ivanyan and Vasily Torkanovskiy Ivanyan &amp; Partners 179</p><p>Saudi Arabia Robert Thoms and Sultan Al-Hejailan The Law Firm of Salah Al-Hejailan 186</p><p>Suriname Hans Lim A Po Jr Lim A Po Law Firm 189</p><p>Sweden Harald Nordenson and Caroline Falconer Setterwalls 193</p><p>Switzerland Paul Gully-Hart and Peter Burckhardt Schellenberg Wittmer 199</p><p>Trinidad &amp; Tobago Edward H Davis Jr, Ava Borrasso and Sunita Harrikissoon Astigarraga Davis 205</p><p>United Arab Emirates Charles Laubach and Aly Shah Afridi &amp; Angell 210</p><p>United Kingdom Monty Raphael Peters &amp; Peters 217</p><p>United States Homer E Moyer Jr, James G Tillen, Jeffrey Hahn and Marc Alain Bohn Miller &amp; Chevalier Chartered 229</p><p>Venezuela Fernando Pelez Pier, Giovanni Rionero and Patrick Petzall K Hoet Pelez Castillo &amp; Duque Abogados 236</p><p>Vietnam Nghiem Thanh Tung and Mai Thi Minh Hang Russin &amp; Vecchi 241</p><p>Zambia Mutembo Nchito MNB Legal Practitioners 247</p><p>Appendix 251</p><p>Anti-Corruption Regulation 2010Contributing editor: Homer E Moyer Jr Miller &amp; Chevalier Chartered</p><p>Business development manager Joseph Samuel</p><p>Marketing managers Alan Lee George Ingledew Robyn Hetherington Dan White Tamzin Mahmoud Ellie Notley</p><p>Subscriptions manager Nadine Radcliffe subscriptions@gettingthedealthrough.com</p><p>Assistant editor Adam MyersEditorial assistant Nina Nowak </p><p>Senior production editor Jonathan Cowie</p><p>Chief subeditor Jonathan AllenSenior subeditor Kathryn SmulandSubeditors Ariana Frampton Charlotte Stretch Peter Beech</p><p>Editor-in-chief Callum CampbellPublisher Richard Davey</p><p>Anti-Corruption Regulation 2010 Published by Law Business Research Ltd 87 Lancaster Road London, W11 1QQ, UK Tel: +44 20 7908 1188 Fax: +44 20 7229 6910 Law Business Research Ltd 2010No photocopying: copyright licences do not apply.ISSN 1742-9862</p><p>The information provided in this publication is general and may not apply in a specific situation. Legal advice should always be sought before taking any legal action based on the information provided. This information is not intended to create, nor does receipt of it constitute, a lawyerclient relationship. The publishers, organisations associated with the publication and authors accept no responsibility for any acts or omissions contained herein. Although the information provided is accurate as of 1 March 2010, be advised that this is a developing area.</p><p>Printed and distributed by Encompass Print Solutions Tel: 0870 897 3239</p><p>LawBusinessResearch www.gettingthedealthrough.com </p><p>CONTENTS</p></li><li><p>UNITED ARAB EMIRATES Afridi &amp; Angell</p><p>210 Getting the Deal Through Anti-Corruption Regulation 2010</p><p>United Arab EmiratesCharles Laubach and Aly Shah</p><p>Afridi &amp; Angell</p><p>1 International anti-corruption conventionsTo which international anti-corruption conventions is your country a signatory?</p><p>The United Arab Emirates (UAE) ratified the United Nations Con-vention against Corruption (the Convention) pursuant to Federal Decree No. 8 of 2006. </p><p>2 Foreign and domestic bribery lawsIdentify and describe your national laws and regulations prohibiting bribery of foreign public officials (foreign bribery laws) and domestic public officials (domestic bribery laws).</p><p>Domestic bribery lawsBribery is punishable in the UAE according to articles 234 to 239 of the UAE Penal Code, Federal Law No. 3 of 1987 (the Federal Penal Code). The Federal Penal Code applies to the UAE as a whole. The Emirate of Dubai also has its own penal code, namely the Penal Code 1970 (Dubai Penal Code). In addition to the above, two further laws are directly related to bribery. These are Federal Decree-Law No. 11 of 2008 (also known as the Federal Human Resources Law) and more recently Dubai Law No. 37 of 2009 on the Procedures for the Recovery of Illegally Obtained Public and Private Funds (Financial Fraud Law). These are each discussed in the relevant sections of this chapter.</p><p>Foreign bribery lawsAs discussed in question 1, the UAE has ratified the Convention pursuant to Federal Decree No. 8 of 2006.</p><p>Foreign bribery</p><p>3 Legal frameworkDescribe the elements of the law prohibiting bribery of a foreign public official.</p><p>The Convention as adopted by Federal Decree No. 8 of 2006 requires each state party to adopt such legislative and other measures as may be necessary to establish as a criminal offence the bribery of foreign officials and officials of public international organisations. The UAE has yet to meet the obligation to criminalise bribery of foreign public officials and officials of international public organisations. Appli-cable legislation is not yet in place in connection with prohibiting bribery of a foreign official and matters related thereto. </p><p>4 Definition of a foreign public officialHow does your law define a foreign public official?</p><p>As mentioned in question 3, the UAE has not as yet enacted any legislation which criminalises bribery of foreign public officials. </p><p>5 Travel and entertainment restrictions To what extent do your anti-bribery laws restrict providing foreign officials with gifts, travel expenses, meals or entertainment?</p><p>None, in the context of foreign public officials.</p><p>6 Facilitating paymentsDo the laws and regulations permit facilitating or grease payments?</p><p>None, in the context of a foreign public official.</p><p>7 Payments through intermediaries or third partiesIn what circumstances do the laws prohibit payments through intermediaries or third parties to foreign public officials?</p><p>None, in the context of a foreign public official.</p><p>8 Individual and corporate liabilityCan both individuals and companies be held liable for bribery of a foreign official?</p><p>In the context of a foreign official, there are no provisions under UAE Law that are relevant. </p><p>9 Civil and criminal enforcementIs there civil and criminal enforcement of your countrys foreign bribery laws?</p><p>No legislation has been passed in the UAE determining the proceedings which may be resorted to in cases involving bribery against foreign officials.</p><p>10 Agency enforcementWhat government agencies enforce the foreign bribery laws and regulations?</p><p>As the UAE has yet to promulgate laws in implementation of the Convention, there is presently no government agency that has been appointed to enforce foreign bribery laws and regulations. </p><p>11 LeniencyIs there a mechanism for companies to disclose violations in exchange for lesser penalties?</p><p>None, in the context of bribery of foreign public officials.</p><p>12 Dispute resolutionCan enforcement matters be resolved through plea agreements, settlement agreements, prosecutorial discretion or similar means without a trial?</p><p>No, in the context of bribery of foreign public officials, given the absence of relevant legislation.</p></li><li><p>www.gettingthedealthrough.com 211</p><p>Afridi &amp; Angell UNITED ARAB EMIRATES</p><p>13 Patterns in enforcementDescribe any recent shifts in the patterns of enforcement of the foreign bribery rules.</p><p>Not applicable. Please refer to questions 1 and 3.</p><p>14 Prosecution of foreign companiesIn what circumstances can foreign companies be prosecuted for foreign bribery?</p><p>There is no specific set of laws in the UAE regulating the procedure to be followed in order to prosecute foreign companies with respect to foreign-related bribery. </p><p>15 SanctionsWhat are the sanctions for individuals and companies violating the foreign bribery rules?</p><p>No sanctions are prescribed in the UAE for individuals and compa-nies violating foreign bribery rules. </p><p>16 Recent decisions and investigationsIdentify and summarise recent landmark decisions or investigations involving foreign bribery.</p><p>There are no decisions or investigations that we are aware of involv-ing foreign bribery.</p><p>Financial record keeping</p><p>17 Laws and regulationsWhat legal rules require accurate corporate books and records, effective internal company controls, periodic financial statements or external auditing?</p><p>Federal Law No. 8 of 1984 pertaining to Commercial Companies Law (the Commercial Companies Law) contains general provisions with respect to financial statements and the appointment of external auditors with respect to UAE companies. The following are required to be fulfilled with respect to the appointment of external auditors: they must be listed in the Register of Auditors and Accountants in </p><p>accordance with Federal Law No. 22 of 1995 Regarding Organi-sation of Auditing Profession (Federal Law No. 22 of 1995), which regulates the professions of auditing and accountancy;</p><p> the auditors appointed by the company may not hold positions as a participant in the companys establishment, be a member of the board of directors of the company or hold any technical, administrative or consultative position; and</p><p> the auditors must not be partners or agents of any of the founders of the company or of any of the members of the board of direc-tors of the company or related to any member of the board of directors up to the fourth degree.</p><p>Article 197 of the Commercial Companies Law (which applies to public joint-stock companies and private joint-stock companies) restricts a company from offering any type of cash loan to the chair-man of the company or a member of the board of directors and also prohibits the company from guaranteeing a loan to the chairman or the member of the board of directors. Certain exceptions are made in the case of the chairman and board of directors of banks and credit companies. In terms of article 198 of the Commercial Companies Law, a company (ie, a public joint-stock company or a private joint-stock company) is also restricted from making any loans or dona-tions within two years of incorporation of the company unless these donations are made by way of customary gifts from the profits of the company. With regard to gifts other than these, in order that a donation be valid, authorisation of the board of directors in a general </p><p>meeting is required and must not be in excess of 2 per cent of the average net profits of the company during the two financial years preceding the year in which the donation is to be made.</p><p>Further, Ministerial Resolution No. 518 of 2009 Concerning Governance Rules and Corporate Discipline Standards apply to all companies and institutions whose securities have been listed on a securities market in the UAE and to their board members. Said Min-isterial Resolution contains detailed provisions for internal control, the formation of an audit committee and the appointment of external auditors. </p><p>18 Disclosure of violations or irregularitiesTo what extent must companies disclose violations of anti-bribery laws or associated accounting irregularities?</p><p>UAE law does not make any specific requirements upon auditors to disclose any violation under anti-bribery laws. However, in terms of Federal Law No. 22 of 1995 and a circular issued by the Ministry of Economy in March 2003, there is a requirement for all auditors when necessary and in view of promoting the public interest, to furnish any information in respect of a company or establishment for which he was or still is handling the audit to the competent authorities when required, provided that the competent authority must obtain authori-sation from the competent judicial authority prior to requesting such information. Accordingly, any disclosure by an auditor in the UAE can only be pursuant to the foregoing.</p><p>19 Prosecution under financial record keeping legislationAre such laws used to prosecute domestic or foreign bribery?</p><p>There are no known insta...</p></li></ul>