Issuing a new law in the UAE and imposing imprisonment and fines on those who violate it

The United Arab Emirates issued Federal Law No. 3 of 2021 regulating donations and the collected funds, whether cash or in-kind, movable or fixed, including national currency, foreign currencies, bonds, sukuk and shares, and whatever their form, including electronic or digital, To spend from it on charitable causes or to provide charitable or humanitarian services and aid.

The purpose of the donations


What is the purpose of issuing a law to regulate donations?

The law regulating donations is one of the important laws in the United Arab Emirates, as it is mainly related to the culture of giving and charitable work that is rooted in the UAE society. Hence, the Ministry of Community Development worked in coordination with the relevant local authorities to issue a federal law that would organize this work within the framework of a set of Controls and provisions, in order to preserve the donors’ money and protect it from any form of exploitation and to ensure that it reaches its rightful beneficiaries.

fundraisers

What is the difference between the authorized entities and those authorized to collect donations?

The licensed bodies are charitable societies, and federal, local and civil bodies and institutions whose establishment laws, decrees or decisions allow them to collect, receive and provide donations. It is based on collecting, receiving and making donations.

As for the authorized bodies, they are the legal persons who are granted permission by the competent authority to collect donations in accordance with the provisions of this law. These bodies must obtain a permit from the competent authority in accordance with the controls and conditions specified in the law and its executive regulations.

Do you have a list of authorized and approved bodies to collect and receive donations?

At the state level, there are a number of accredited associations and institutions, and there are more authorities that are authorized to collect donations by permission from competent authorities. To view the list of licensed and approved entities.

Punishment

What is the penalty for violating the provisions of the fundraising law?

Shall be punished by imprisonment and a fine of no less than 200,000 dirhams and not more than 500,000 dirhams, or either of these two penalties, whoever collects or receives donations, gifts, bequests or subsidies from any person or entity outside the country, except in accordance with the controls and procedures specified by the executive regulations of the law. . The penalty is doubled in case of return.

A penalty of imprisonment and a fine of no less than 200,000 dirhams and not more than 500,000 dirhams, or one of these two penalties, shall be imposed on anyone who trades in donation funds, engages in financial speculation, or distributes revenues or returns to members or employees of associations. The penalty is doubled in case of return.

Shall be punished by imprisonment and a fine of no less than 200,000 dirhams and not more than 500,000 dirhams, or either of these two penalties, whoever commits any act during the collection, acceptance or presentation of donations that harms public order, national security, public morals, or encourages any sectarian disputes. ethnic, racial, religious, cultural, or any illegal purpose according to the legislation in force in the country. The penalty is doubled in case of return.

In all cases, the court shall order the confiscation of the donations collected in violation of the provisions of this law, and the deportation of the foreigner after carrying out the sentence imposed on him.

Inventory of donations

Why was the fundraising process restricted to charities?

Collecting, making and receiving donations is an essential work of charities, and accordingly it has the vast experience and capabilities necessary to carry out such tasks.