Key Updates and Fines : The UAE government has recently introduced a new framework for administrative penalties targeting public benefit institutions. This initiative, outlined in Federal Decree-Law No. (50) of 2023, is designed to enhance compliance, promote transparency, and ensure accountability in the operations of such entities. Below, we break down the key offences and their corresponding penalties to help public benefit institutions stay informed and compliant.
1. Failure to Notify Changes Within the InstitutionPublic benefit institutions are required to notify authorities of any changes within their organization. Failing to do so will result in the following penalties:
First and Second Violations: Warning
Third Violation: AED 1,000 fine
Fourth Violation: Temporary closure of the institution for one month
2. Unauthorised Participation in EventsInstitutions must obtain approval before participating in events. Violations of this requirement lead to:
First Violation: Warning
Second Violation: AED 1,000 fine
Third Violation: AED 2,000 fine
3. Hosting Individuals for Events Without ApprovalInstitutions must secure prior approval before hosting individuals for events. The penalties differ based on whether the individuals are from within the country or outside the country:Hosting Individuals From Within the UAE Without Approval:
First Violation: Warning
Second Violation: AED 1,000 fine
Third Violation: AED 2,000 fine
Hosting Individuals From Outside the UAE Without Approval:
First Violation: AED 2,000 fine
Second Violation: AED 4,000 fine
Third Violation: AED 6,000 fine
Importance of Compliance: This new resolution underscores the UAE government’s commitment to fostering transparency and accountability within the public benefit sector. By adhering to these regulations, institutions not only avoid penalties but also contribute to a culture of compliance and integrity across the nation.
Final Thoughts Public benefit institutions in the UAE are encouraged to familiarize themselves with these new regulations and take proactive steps to ensure compliance. Whether it’s notifying authorities of organizational changes, obtaining necessary approvals, or adhering to event guidelines, following these rules is essential to avoid penalties.Stay informed and compliant to support the UAE’s vision for a transparent and accountable public benefit sector.
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