Fundraising by Persons is a Punishable Crime

The Ministry of Community Development has confirmed that Federal Law No. 3 of 2021 on the regulations of fundraising prohibits a natural person from establishing, organizing or performing any act with the aim of collecting or accepting fundraising amounts from the public by any means in line with the regulations and measures of the Executive Office for Combating Money Laundering and Terrorist Financing.

The ministry emphasized that the fundraising regulations law set the conditions and procedures for fundraising, where authorized entities must obtain a fundraising permit from the competent authority, and the collection process should be carried out through charity associations only.

In this context, Excellency Hessa Abdul Rahman Tahlak, Assistant Undersecretary of Social Development at the Ministry of Community Development said: “Calling People for fundraising to assist certain humanitarian situations by any means of advertising, whether through social media or websites, is a punishable offence by the fundraising regulations law; whereas the the law states penalty of imprisonment and a fine with at least AED (150,000) dirhams and not more than AED (300,000) or one of these penalties- without prejudice to any severe penalty stipulated by another law- as well as the confiscation of the fundraising amounts by the court in violation of the provisions of the law”.

Excellency Hessa Tahlak stated that the ministry and competent local authorities are responsible for overseeing and controlling non-benefit profit associations & NGOs through the implementation of inspection field visits to ensure that the non-benefit public associations and NGOs, its members as well as the society members fully comply with the provisions of the law. Approximately (2,400) evaluation and inspection visits were carried out on the sector from the beginning of 2019 until the end of last October which resulted to a series of penalties and administrative fines on violators from these associations.

Furthermore, Excellency Hamed Al Zaabi, Director of the Executive Office for Combating Money Laundering and Terrorist Financing stated that the main goal of the laws and regulations applied in the UAE are to protect fundraisers and protect their funds from the risks of exploitation in financing terrorism and illegal organizations. Excellency Al Zaabi emphasized the need for all members of the society to abide by the laws and regulations on countering money laundering and terrorist financing in the UAE.

It is worth mentioning that the federal law of fundraising regulations, procedures and by laws specified for these tasks come in line of the keenness of the Ministry of Community Development and the Executive Office for Combating Money Laundering and Terrorist Financing is to promote and increase awareness among all the members of the community with the laws and regulations applied in the UAE thereby enhancing stability, security and cohesion of the society.