First whistleblowing regime unveiled in Dubai

The Dubai Financial Services Authority (DFSA) has launched a new regulatory framework to support the practice of reporting misconduct.

The aim is to provide enhanced legal protection to those who report misconduct internally within DFSA-regulated entities or externally to either their auditor, the DFSA or a law enforcement agency.

The regime is the first-of-its-kind to be introduced by a financial service regulator in the UAE and applies to all DFSA-regulated entities operating in, or from, the Dubai International Financial Centre (DIFC).

It is also designed to improve the whistleblowing culture in these entities by increasing transparency around how they handle regulatory concerns; assess those concerns and, where appropriate, escalate those concerns.

Importantly, a DFSA-regulated entity must also put in place measures to protect the identity of the whistleblower and to protect them from suffering any negative consequences.

"Whistleblowers form a key part of a firm’s ability to detect, identify and escalate issues of misconduct, and the required Whistleblower policies and procedures play an important role in encouraging appropriate disclosures," says F. Christopher Calabia, Chief Executive of the DFSA.

"We expect all regulated entities to be ready to discuss and demonstrate the application of their policies and procedures when engaging with the DFSA."