Company Insider Reveals Confidential Info, Faces Financial Penalty of AED 100,000 in UAE
In a recent court ruling, a tax representative in Abu Dhabi was ordered to pay Dh100,000 as compensation for unlawfully disclosing confidential company information. This case serves as a reminder of the importance of maintaining corporate confidentiality and the legal obligations of tax representatives regarding client information.
The individual in question breached confidentiality agreements and shared sensitive data pertaining to a company’s tax affairs without authorization. The court's decision to impose a Dh100,000 fine underscores the strict enforcement of confidentiality laws in the UAE and serves as a precedent to deter similar breaches in the future.
The damages caused to the company were a result of the employee's actions, with the loss of clients and the disclosure of information related to the business's rate of interest. The court papers stated the details of the employee's actions and the damages caused.
Prior to this ruling, a criminal case was previously filed against the employee, resulting in a conviction and a fine of Dh10,000 in absentia. The employee later surrendered to the authorities. The court ruling was issued on 9 January 2023.
This ruling aligns with UAE’s broader regulatory framework aimed at protecting business integrity and privacy. It emphasizes the need for individuals in positions of trust to uphold their legal responsibilities and maintain the confidentiality of sensitive information.
If you need more specific details such as the case name, court proceedings, or legal references, access to official court records or legal databases in the UAE would be required.
In light of the court ruling, individuals in finance and business, especially tax representatives, must be mindful of their general-news obligations regarding client information to avoid breaching confidentiality agreements and facing severe penalties, as demonstrated by the case in Abu Dhabi where unauthorized disclosure of sensitive data led to a Dh100,000 fine and a Dh10,000 fine in a previous criminal case. Crime-and-justice consequences also apply when confidential information is shared, as evidenced by the loss of clients and disclosure of interest rates in the discussed case.
