Weekly Spotlight Archives - Page 4 of 19

Saudi Arabia:Money Laundering and Terrorist Financing

19/09/202019/09/2020
by Benjamin Filaferro

Saudi Arabia’s Monetary Authority has announced new money exchange business regulations have been approved. They are aimed at tackling money laundering and terrorist financing as well as protect clients.
They will come into force 30 days after they are issued and allow hotels, hotel apartments and tourist offices to exchange currencies from their customers provided these currencies are sold to a licensed bank or exchange centre and national anti-money laundering provisions and UN Security Council resolutions on the spread of weapons of mass destruction and their financing are complied with.
Licensed money changers will only be able to buy, sell and circulate foreign currencies and import and export currencies. They will be licensed by the Monetary Agency.

Exchange shops should not carry out any activities which they are not licensed to. This includes any other commercial business not approved by the Agency, opening current accounts, investment accounts, savings accounts, or any other accounts for their clients or employees. In addition, they should not issue letters of guarantee or open documentary credits or guarantees, lease safes, accept deposits or speculate in currencies, metals and stocks.
In addition, they have to comply with Saudisation requirements, contract with employment services companies regarding working hours, official holidays, appointments to leadership positions and provide an administrative structure which includes all departments and jobs. This structure has to specify the tasks of departments and individual duties and responsibilities. A compliance officer also has to be appointed.
Exchanges must set an appropriate framework to protect customers from fraud and loss of privacy and comply at all times with clear signs for the public indicating customer rights and provide clear channels to receive complaints and address them within seven days.
Exchanges also have to commit to anti-money laundering and terrorist financing instructions, identify, document and address risks and develop and implement appropriate and appropriate policies capital. In addition, they have to have two million Riyals in paid up capital. This is 7 million for payments to Centres who import and export cash have to have seven million Riyals in liquidity and centres authorised to transfer funds outside the Kingdom have to have 10 million Riyals. They also have to keep a cash reserve of between 5 and 10%.

Licenses will be valid for five years and may be renewed. If a license is being renewed, it has to be done six months before the license is due to expire. They have to commit to carry out the activity in a suitable location, not use the word bank or bank, identify suspicious and fraudulent transactions and comply with the risk management policy. They also have to record all operations in the automated system and maintain confidentiality of information.
In terms of attribution to a third party, an approved policy, which is periodically reviewed, has to exist and there should be no obstacles to accessing their data. They must also be licensed to practice their commercial activity.
When it comes to importing and exporting currencies, there have to be customs notifications at border crossings, all documents for the importing and exporting of currencies have to be kept and funds have to be prepared in an appropriate way before they are transferred.
Exchanges also have to comply with all Monetary Agency instructions in terms of consumer protection and transaction receipts. They also have to ensure currency rates are clearly on display and resolve complaints within a week.
They should ensure their confidential information is not disclosed. Periodic data has to include the location of the head office, branches, and other entities, holders of leadership positions and their job titles, a list of employee data and names, suspension or restriction of services. If they do not, their license will be temporarily suspended.

Their exchange permit will be cancelled if they do not meet the requirements of the regulations, if one of the license conditions is lost, if its information is found to be incorrect or if the centre harms its clients or the public interest. Their permit will also be cancelled if the inspection team is prevented from performing its task or if it refuses to provide the Agency with the requested documents.

Qatar: Conditions for Changing Jobs Without No-Objection Certificate Announced

14/09/202014/09/2020
by Benjamin Filaferro

Qatar’s Administrative Development, Labour, and Social Affairs Ministry has announced the conditions for employees looking to change jobs without having to have a no-objection certificate.
The employee has to notify employers through the Ministry’s electronic notification system. They will have to serve notice of at least a month. If the employee has been in the job for two years or less two-months’ notice will have to be given.
When they submit their notification, they have to provide the Ministry’s change-of-employer form ,a copy of the contract signed with the former employer, authenticated by the Ministry or employment offer if a copy of the contract cannot be provided. They will also have to submit the new employer’s job offer in Arabic.
The employee and new employer will then receive an SMS from the Ministry confirming the change of employment.
The new employer should initiate the electronic employment contract on the Ministry’s Digital Authentication System and print out the employment contract and discuss and sign it with the employee.
A signed version of the new employment contract should be uploaded on the Ministry’s system and the authentication fee of 60 Riyals will have to be paid.
When the contract is authenticated, the new employer should submit a request for a new QID to the Interior Ministry.
Once these procedures are completed, the employee will be able to start their new job. The employee should receive their new Qatari ID card (QID) and health card from the new employer.
Where an employee wants to change jobs during their probation period, the current employer has to be given at least one month’s notice. The new employer has to compensate the current employer a portion of recruitment fees and one-way air ticket at the amount agreed to by the current and new employers. However, this cannot exceed two months of the employee’s current basic wage. Authentication System and print out the employment contract and discuss and sign it with the employee.
A signed version of the new employment contract should be uploaded on the Ministry’s system and the authentication fee of 60 Riyals will have to be paid.
When the contract is authenticated, the new employer should submit a request for a new QID to the Interior Ministry.
Once these procedures are completed, the employee will be able to start their new job. The employee should receive their new Qatari ID card (QID) and health card from the new employer.
Where an employee wants to change jobs during their probation period, the current employer has to be given at least one month’s notice. The new employer has to compensate the current employer a portion of recruitment fees and one-way air ticket at the amount agreed to by the current and new employers. However, this cannot exceed two months of the employee’s current basic wage.

UAE: Abu Dhabi Digital Supplier Portal Launched

04/09/202004/09/2020
by Benjamin Filaferro

Abu Dhabi’s Chamber of Commerce and Industry has announced it has launched a Digital Supplier Portal. It will allow quick access to a package of smart services, which have been especially designed to meet the needs and requirements of suppliers, including supplier registration, purchase orders, bids offered and contracts and invoices. Suppliers will be able to access a package of related smart services and learn about the latest related developments easily.

UAE: Federal Law No. 8/1980 Concerning The Regulation Of Labour Relation

04/09/202004/09/2020
by Benjamin Filaferro

The UAE’s President has approved amendments to the country’s Labour Law (Federal Law No. 8/1980).
Under the amendments, private sector employees will be able to get paid parental leave of up to five days to care for their children. Mothers and fathers will be able to get the leave from when the child is born to when they are six months’ old.
It is the first time this type of leave has been given to male private sector employees in the region. Previously, companies could choose to give paid parental leave to fathers. Mothers will be given an extra five days of paid leave as well.
Women working in the private sector can get 45 day’s maternity leave on full pay, provided they have served continuously for at least a year. At the end of the maternity leave, the new mum can extend their leave without pay for up to 10 days. Maternity leave is paid with half pay if a year of service has not been completed.
There is uncertainty over whether or not Government employees can benefit in the same way. Male public sector employees currently get three days leave following the birth of a child. Women working in the country’s public sector get 90 day’s paid leave. Depending on the Emirate, more time in unpaid leave is typically given. For the first 18 months after birth, women are given two paid rest intervals a day. However, more than 30 minutes cannot be spent nursing the baby.
It is the latest move by the UAE authorities to keep female employees. In 2018, a law ensuring women were paid an equal wage to their male colleagues was approved by the country’s Cabinet.

Bahrain: Flexible Work Permit Decision Issued

31/08/202031/08/2020
by Benjamin Filaferro

Bahrain’s Cabinet has approved a flexible work permit Decision.
It follows recommendations from the Coordinating Committee led by Bahrain’s Crown Prince, Deputy Supreme Commander and First Deputy Prime Minister.
The Decision specifies the procedures for developing a permit policy for a foreign employer to practice some professional activities.

The aim is to develop this system and activate it in order to develop the labour market systems and its monitoring in the country. It is also aimed at enhancing job opportunities for citizens to make the country the first choice for employment, protect workers’ rights and prevent them from being exploited.
The procedures for developing the policy include intensifying inspection campaigns on foreign employers to ensure they do not work in professional activities which a foreign employer may not engage in without obtaining a permit. Inspection campaigns on informal workers will also be intensified to ensure the relevant measures are complied with.

Workers who do not comply with the regulatory procedures will not be able to apply for the flexible work permit and the registration of industrial motor vehicles used in construction and transport buses owned by holders of a flexible work permit will be terminated.

A committee consisting of representatives from the Labour and Social Development Ministry, the Finance and National Economy Ministry, the Industry, Commerce and Tourism Ministry, the Works, Municipalities Affairs and Urban Planning Ministry, the Electricity and Water Affairs Ministry, the Labour Market Regulatory Authority, BCCI and the Education and Training Quality Authority will be established. They will propose regulatory standards for 20 identified professions and any other professions the committee considers relevant to include. They will also share recommendations with the Supreme Council for the Development of Education and Training within two months.

Saudi Arabia: Anti-Commercial Concealment Law Approved

24/08/202024/08/2020
by Nawell Bel Hhaddou

Saudi Arabia’s Council of Ministers has approved a new Anti-Commercial Concealment Law. Under the law, violators will be jailed for five years and fined five million Riyals. It will also protect whistleblowers in anti-commercial concealment cases, according to the Kingdom’s Commerce Ministry.

The relevant Government agencies will be able to limit business licensing fraud or cover-up offences. They will also be able to demand entities which issue licenses to businesses follow up on them and inform the Commerce Ministry of any suspicious practices.

The Law was approved by the Shoura Council last month and will also see whistleblowers given up to 30% of the fines imposed on violators where this is applicable. It will be given once the case has been resolved. Those who report any fraudulent activities will be exempt from penalties or have the penalties commuted.

The relevant entities will be able to use technology to prove violations through ‘electronic evidence’ in addition to other evidence. The system also allows commuting or exempting from penalties for those who report violations.

The aim is to protect consumers and SMEs.

The approval of the law follows an announcement earlier this week that an anti-commercial fraud committee was going to be established.

Qatar: Labour Ministry Launches Online Work Permit Service

17/08/202017/08/2020
by Benjamin Filaferro

Qatar’s Administrative Development, Labour and Social Affairs Ministry has announced it is going to launch two new services, including a work permit service on Sunday. The work permit service will be available to those who are on the residency of their relatives or who are changing profession. This will benefits residents who want to issue a new work permit or renew, cancel or get a replacement for one. It is part of the Ministry’s efforts to provide more services online to improve processing times and allow services to be provided remotely.

It will also benefit employees who are not directly recruited by employers and want to contract with it for regular and main professions with supporting documents attached, particularly if sub-professions in line with the terms and conditions. Those applying to change professions or job titles will have to provide their resident ID card. It can also be provided by the relevant party or the authorised signatory providing the documents required are attached.

The Ministry has prepared an online directory which the relevant person or employer can refer to via the website or through the Ministry’s social media platforms to learn about service requirements, terms, conditions and procedures.

Lebanon: Port Officials Put Under House Arrest

07/08/202007/08/2020
by Benjamin Filaferro

The sad events in Beirut this week have shocked the world resulting as they have done in the deaths of at least 135 people, over 5000 injured and up to 250,000 now homeless after ammonium nitrate which had been stored in the port for over six years caused a massive explosion. As is now emerging it began with a legal story – the arrest of an indebted Russian leased cargo ship which had made an unscheduled stop at the port. It is being reported that customs officials had repeated sought clarification from the courts on what they should do with the seized cargo and had made suggestions including handing it over to the army or selling it to a private company.

It is understood the Cabinet have now ordered the house arrest of the officials who were responsible for storing the material so there will undoubtedly also be further legal developments in this case including litigation, possibly new laws and regulations, and even potentially changes of legal procedure.

We began our analysis yesterday on Lexis Middle East with an article by Michael Kortbawi of BSA Ahmad Bin Hezeem & Associates LLP on the potential compensation sources https://www.lexismiddleeast.com/eJournal/2020-08-05_22/

In the coming months as matters are unearthed and authorities in Lebanon and potentially elsewhere in the region too, learn the lessons from this event and make legal changes, we will continue to follow this story and provide further analysis.

Egyptian Data Protection Law Approved

26/07/202024/07/2020
by Benjamin Filaferro

Egypt’s President has approved the Personal Data Protection Law. Egypt Law No. 151/2020 will promote the security of personal data, which is being processed and stored online. It also sets a legal framework to regulate data transmission with other countries. The draft law was approved by the country’s House of Representatives in February. It prohibits the collecting of or processing individuals’ data or spreading them without the permission of the relevant individuals, except in specific cases. It will apply to Egyptians in the country and expatriates. It will be also enforced on non-Egyptians in and outside Egypt as long as the data belong to Egyptian citizens or foreigners staying inside Egypt. Those who violate the Law will be jailed for up to one year and fined between 100,000 and one million Egyptian Pounds.

A Personal Data Protection Centre will be established and will be responsible for protecting personal data and regulating its availability and processing. A Controller or processor of data will have to inform the Centre of any personal data protection breaches within 72 hours of identifying it. Where the breach affects national security, data controllers and processors must notify the Centre within 24 hours and national security authorities.

They will also be responsible for developing strategic plans, policies and programmes to protect personal data and will have to work with all the relevant Government and non-Government bodies to execute protection measures.

It will consist of representatives from the Justice and Foreign Affairs Ministries, the General Intelligence Service and the Administrative Control Authority. It will have three members who will be chosen by the relevant Minister. In terms of cross-border personal data protection, it is prohibited to carry out transfers, storage, or sharing of personal data which was collected or prepared for processing to a foreign country unless there is a level of protection which is line with the requirements of the law and it will have to be licensed or authorised by the Personal Data Protection Centre.

UAE: Identity and Citizenship Decisions Approved

20/07/202020/07/2020
by Benjamin Filaferro

The UAE’s Cabinet has approved various identity and citizenship amendments. The decisions include suspending the decisions related to the residency of expatriates, visas, entry permits and identity cards valid from 11 July 2020.

The Federal Authority for Identity and Citizenship has been authorised to start collecting the fees owed for services it provides from 12 July 2020. The Cabinet also approved a one-month grace period for UAE nationals and GCC nationals and residents who have spent less than six months abroad to renew their documents.

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