The UAE has issued various regulations to fight money laundering and combat financing of terrorism. Sammy Dallal / The National
The UAE has issued various regulations to fight money laundering and combat financing of terrorism. Sammy Dallal / The National
The UAE has issued various regulations to fight money laundering and combat financing of terrorism. Sammy Dallal / The National
The UAE has issued various regulations to fight money laundering and combat financing of terrorism. Sammy Dallal / The National

Economy

Central Bank of the UAE sets up whistleblowing channel to report misconduct

Regulator sets up a secure platform on its website to report suspected wrongdoing, which allows for supporting evidence to be attached

Michael Fahy
Michael Fahy

June 07, 2021

  • English
  • Arabic

The Central Bank of the UAE has set up a new whistleblowing portal allowing employees and other parties to report concerns about misconduct.

The portal is "an encrypted channel that allows internal and external stakeholders to anonymously raise any concern related to misconduct or policy violations" by any of the central bank's own employees, contractors or other representatives, the regulator said in a statement on Monday.

"The portal, located on the CBUAE website, allows employees and external stakeholders, such as financial institutions, vendors and the public to voice their concerns around misconduct without the fear of reprisal," the statement said.

It also allows those submitting concerns to attach any documents or files in support of any claims made.

A global report issued in March by the International Bar Association and the Government Accountability Project found that there are currently 48 countries worldwide that have national whistleblowing laws in place. That is set to increase to 62 once all European Union member states adopt a directive passed in 2019.

The survey also found that web portals are replacing traditional hotlines, as they offer "the additional benefits of anonymity, while facilitating the provision of supporting documentation and communication with an investigative authority".

The Central Bank of the UAE said its introduction of a portal is part of the organisation's efforts to promote its own code of conduct and high governance standards.

The portal will also address "occurrences of alleged illegal and unethical practices by taking the necessary action in a timely manner", the central bank's statement said.

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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