UAE Government imposes Up to Dh500,000 fine for illegally raising donations

Unauthorized online fundraising through websites and other electronic means now faces strict penalties in the UAE as the government implements regulations to govern charity fundraising activities.

Recently, the Public Prosecution issued a warning against collecting donations without the necessary licenses, emphasizing the importance of adhering to legal requirements when soliciting funds through digital platforms.

According to the law, individuals or entities found managing websites or utilizing electronic channels to promote donation collection without proper permits can be subject to legal action, including fines and imprisonment.

The penalties for unauthorized fundraising activities are clearly outlined in Federal Decree Law No. 34 of 2021, which addresses rumors and cybercrimes. Offenders may face fines ranging from Dh200,000 to Dh500,000, depending on the severity of the violation, along with the possibility of imprisonment. This stringent approach underscores the government's commitment to combating fraudulent fundraising practices and ensuring compliance with established regulations in the charitable sector.

To uphold transparency and accountability in donation collection, the law mandates that licensed entities obtain approval from designated authorities before publishing or promoting any fundraising-related content. Article 46 of the decree law stipulates that licensed organizations must adhere to strict guidelines when soliciting donations, including obtaining permits from relevant regulatory bodies. Failure to comply with these requirements can result in legal repercussions, highlighting the government's efforts to maintain integrity in charitable endeavors.

The legislation also distinguishes between different types of charity organizations operating in the UAE. Licensed entities are established by legal frameworks and are authorized to solicit and administer donations in accordance with established regulations. Additionally, authorized entities have the option to obtain fundraising licenses through recognized charitable institutions in the country. By categorizing charity organizations and imposing penalties for unauthorized fundraising activities, the government aims to protect donors and ensure that funds are utilized for legitimate charitable purposes.

The enforcement of regulations governing online fundraising reflects the UAE's commitment to promoting transparency, accountability, and integrity in charitable activities. Through stringent penalties and regulatory measures, the government seeks to safeguard against fraudulent practices and uphold the principles of ethical fundraising in the digital age.

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