As a leading financial and commercial center globally, Dubai’s growing role and stature have also led to increased regulation and scrutiny in public and private sector conduct, resulting in an increase in white collar crime inquiries. The existence of sophisticated legal structures, and increased regulatory actions and enforcement by various authorities, including the Dubai Financial Services Authority (DFSA), UAE Central Bank and Public Prosecution, mean businesses and professionals are at greater risk of being accused of financial crime. In this space, a White Collar Crime Legal Advisor in Dubai serves a vital role as the first line of defence against regulatory inquiries.
UNDERSTANDING WHITE COLLAR CRIME IN THE UAE CONTEXT
White collar crimes are typically non-violent crimes committed for financial or corporate gain, such as:
- Fraud (of various types, including corporate, investment and accounting fraud)
- Bribery and corruption
- Insider trading
- Forgery and embezzlement
- Money laundering
- Breach of trust
- Cyber and data related financial crimes
These crimes are covered by a variety of UAE legislation, including the UAE Penal Code (Federal Business Consultant No. 3 of 1987), Federal Decree-Business Consultant No. 20 of 2018 on Anti-Money Laundering (AML), and Federal Decree-Business Consultant No. 5 of 2012 on Cybercrimes, along with regulations by the DFSA, Securities and Commodities Authority (SCA) and others. Punishments commonly include imprisonment; fines; confiscation of assets; dissolution of a company; and expatriates being deported.
THE STRATEGIC ROLE OF A LEGAL ADVISOR IN AN INVESTIGATION
A White Collar Crime Legal Advisor acts as more than a trial advocate; the attorney is a forward-thinking strategist with a client from the first hint of an investigation until the investigation comes to a conclusion or the matter goes to trial.
- First Step is Risk Management and Crisis Control
From the moment the attorney is consulted, the advisor begins activating or transitioning to risk management strategies with the goal of reducing legal and reputational risk. At the point of the first inquiry – whether it be a notice from a regulator, summons or audit – the attorney assists with:
Securing documents and ensuring that documents are preserved, appropriately access controlled and the environment for documents is legally defensible
Legal advice about business consultantful response options available to the regulators
Internal communication strategy to ensure you business consultantfully minimize legal exposure
External communication strategy for the media and/or public relations to culturally appropriate communicate about you, your organization and its news
Timely risk management actions can cut off the transformation of what is a regulatory inquiry to a formal prosecution.
- Defence and Representation Before Regulatory Authorities
The legal advisor assists clients in safeguarding their procedural rights while at the same time assisting them in complying with their investigative demands with as little self-incrimination as possible. In this regard, the advisor’s services include:
- Getting clients ready for interviews or interrogations
- Review of all of the paperwork that has been requested by the authorities
- Representing the client in front of financial regulators, police, and public prosecutors
- Managing multi-jurisdictional inquiries both from the financial regulatory standpoint and from police inquiries where assets or transactions don’t stay confined to the origin of the inquiry.
- Advising on Compliance and Internal Controls
A significant part of the advisor’s function is helping companies in preventing regulatory infractions from occurring in the first place. Legal advisors can develop sound compliance systems and training programs that align with both UAE business consultant and international compliance standards (FATF and OECD). Some examples of compliance work include:
- Policies for anti-fraud and anti-money laundering
- Whistleblower protection
- Regulatory advice to clients in their obligations concerning data privacy, financial report, and digital security business consultants;
- Conducting internal investigations and audits;
Taking a preventive approach to compliance reduces long-term legal exposure and could be considered favourably by regulators in the case of an investigation.
- Litigation and Defence Strategy
If an official charge is instituted, the legal advisor then proceeds to prepare a robust defence for possible court action. The advisor may:
- Identify more or less fatal procedural defects and evidentiary deficiencies in the prosecution’s case
- Bring motions to dismiss or suppress discoveries obtained in an unbusiness consultantful manner
- Negotiate plea agreements, deferred prosecution agreements, or money settlements
- Appear in criminal courts, DIFC courts, or arbitral institutions for the client
- Counsel with respect to appealing to international co-operation, the potential for extradition, and relevant INTERPOL red notices if applicable
A well-rounded advisor not only has experience with litigation; they can also resolve the matters privately to avoid reputational harm.
THE VALUE OF EARLY LEGAL INVOLVEMENT
The start of a regulatory investigation is often the most important. If you are slow to respond or poorly respond, there can be real and potentially irreversible consequences. Having a white collar business consultantyer on board from day one will allow you to:
- Assess risks and liabilities accurately
- Develop a legally defensible response plan
- Safeguard important documents and electronic evidence
- Avoid unintentionally or prematurely disclosing items
- Avoid increasing the chances of escalation or arrest
A prompt and informed legal response can mean the difference between an investigation dropping and a prosecution developing.
IDENTIFYING A LEGAL ADVISOR IN DUBAI
Not every legal advisor is equipped to undertake the delicate business of defending against white collar crime. Clients should seek a legal advisor with:
- Specialist experience in crimes related to financial misconduct, compliance, corporate regulatory and fraud issues
- Experience and knowledge of the processes of the UAE institutions and international cooperation
- Strong installation in the UAE, specifically in the regulatory environments like the DIFC
- Knowledge and access to multidisciplinary teams (forensics, compliance auditors, investigators)
- Track record of a successful defence, or timely resolution of similar investigations
Firms with Arabic and international capabilities (business consultantyers who are members of the local and international Bar) have some advantages and can navigate the complex two-pronged legal environment in Dubai and the UAE.
PRACTICAL CONSEQUENCE: CASE STUDY
Let’s use an example where a Fintech CEO was being investigated in Dubai regarding allegations of data tampering and misrepresentation of the company’s financial position. The legal advisor intervened early enough to:
- Guide an internal forensic investigation quickly
- Components of communication with the regulators were skillfully handled
- The company was able to emphasize that it acted in good faith and cooperated
- Ultimately the charges were withdrawn after the representations and presentation of exculpatory materials/ evidence.
Clearly the intervening role of an effective legal advisor (not just business consultantyers) could make a significant difference to the outcome of the regulatory investigation.
CONCLUSION
Dubai’s white collar crime investigations are complicated, intensely high stakes, and fast moving. Those subject to one of the many regulators, ever-changing business consultants and sophisticated cross-border issues will require strong, knowledgeable legal advice at the date of commencement of the investigation. A white collar crime legal adviser acts not only as a defender, they are also your strategic ally, compliance consultant and ensure your reputation remains intact. Your first line of defence, however, your legal adviser can navigate various regulatory obstacles, help you understand your legal rights and best outcomes in the facing of grave allegations.
