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The UAE has introduced Federal Decree-Law No. 41/2023 to regulate the accounting and auditing profession, replacing Federal Law No. 12/2014. This new law aims to improve corporate governance standards and Anti-Money Laundering (AML) compliance.
Key Points:
- Defines Chartered Accountants and their permitted activities.
- Applies to onshore UAE practitioners and those in financial-free zones offering services onshore.
- Outlines professional obligations, including licensing requirements and ethical conduct.
- Establishes disciplinary measures for violations, with fines up to AED 1,000,000 and potential license cancellation.
- Creates a grievance process for practitioners to appeal sanctions.
- Introduce a Committee for the Development of the Profession to oversee standards and regulations.
The law emphasizes confidentiality, record-keeping, and transparency in disciplinary actions. It aims to enhance the profession's integrity, boost investor confidence, and promote Emiratisation in the field.
This new decree represents a significant step towards a more regulated and responsible accounting and auditing profession in the UAE, focusing on maintaining high professional standards and accountability.
Originally published 4 Sept 2024
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