General UAE Legal Questions LawCabinet Resolution No. (57) of 2024 Concerning the Administrative Violations and Penalties for Acts Violating the Provisions of Cabinet Resolution No. (56) of 2024 Concerning the Telemarketing Regulations

Article (3) Administrative Penalties First: Administrative penalties imposed by the competent authorities on companies: 1. The competent authority may, subject to competences assigned in accordance with the aforementioned Cabinet Resolution No. (56) of 2024, impose administrative penalty or penalties with respect to any of the actions committed by companies in violation of the aforementioned Cabinet Resolution No. (56) of 2024 in a way that take gradation of penalties into account as follows: a. Warning. b. The administrative fine according to Table No. (1) attached to this Resolution. c. Total or partial suspension of activity for a period not less than (7) seven days and not exceeding (90) ninety days. d. Cancellation of license and deletion from the commercial register, cutting communications services and removing the phone number. 2. The decision issued to impose an administrative penalty shall determine the period required for the violator to remove or remedy the violation under the applicable administrative penalty in case the violating company abstains to remove or remedy the violation. This is provided that gradation in penalties stipulated in Clause (1) of this Article shall be considered. 3. The competent authority may, pursuant to the assigned competences, not follow the gradation in penalties stipulated in Clauses (1) and (2) of this Article, and

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Cabinet Resolution of 2024, Concerning the Administrative Violations and Penalties for Acts Violating the provisions of Cabinet Resolution of 2024 Concerning the Telemarketing Regulations 3 imposes the most severe administrative penalty in case the violating company commits the same violation that was the subject of a previous administrative penalty within (6) six months from the date of imposing the administrative penalty. Second: Administrative penalties imposed by the Authority on natural persons. 1. The Authority may, in coordination with telecommunications companies licensed to operate in the State, impose one or more administrative penalty on a natural person violating the prohibition to conduct marketing phone calls in contradiction with provisions of the aforementioned Cabinet Resolution No. (56) of 2024, taking into account the penalties stipulated in Table No. (2) attached to this Resolution. 2. The authority may not, in coordination with the telecommunications companies licensed to operate in the State, follow the gradation in penalties stipulated in Table (2) attached to this Resolution, and imposes the most severe administrative penalty in case the violating natural persons commits the same violation that was the subject of a previous administrative penalty for the third time. In all cases, a decision to impose the administrative penalty as stipulated in Clauses (First) and (Second) above, shall be issued by the Head of the competent authority, the Head of the Authority (as the case may be) or his delegate. Third: Administrative penalties imposed by the Central Bank on companies and natural persons: The Central Bank shall, upon the approval of the Cabinet, develop a regulation for the administrative violations and penalties imposed on companies that violate provisions of Cabinet Resolution No. (56) of 2024 Concerning the Telemarketing Regulations pursuant to competences assigned to the Central Bank subject to Clause (1) of Article (9) of the aforementioned Cabinet Resolution No. (56) of 2024.

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Cabinet Resolution of 2024, Concerning the Administrative Violations and Penalties for Acts Violating the provisions of Cabinet Resolution of 2024 Concerning the Telemarketing Regulations 4

Article (3) Clause (2) AED 5,000, in addition to cutting all numbers of fixed or mobile phones that are registered under the natural person’s name until the payment of the due AED 20,000, in addition to cutting all numbers of fixed or mobile phones that are registered under the natural person’s name for (3) three months in case such person commits the same violation within (30) thirty days AED 50,000, in addition to preventing the natural person to get any service from the telecommunications companies that are licensed in the State for (12) twelve months in case such person commits the same violation within (30) thirty days from the date on which the administrative penalty is imposed at the second time.

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Cabinet Resolution of 2024, Concerning the Administrative Violations and Penalties for Acts Violating the provisions of Cabinet Resolution of 2024 Concerning the Telemarketing Regulations 12 natural person. financial fine. from the date on which the administrative penalty is imposed at the first time.

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Article (5) Fines Collection 1. The Federal competent authority shall collect fines imposed by the same authority subject to this Resolution at the treasury of the State according to the mechanism decided by the Ministry of Finance. 2. As an exception from clause (1) of this article, the Central Bank shall collect the fines the Bank imposes subject to the regulation of administrative violations and penalties issued pursuant to Clause (Third) of Article (3) of this Resolution according to the mechanism decided by the Bank in this respect. 3. The local competent authority shall collect fines imposed by the same authority subject to this Resolution to the treasury of the local government according to the mechanism applicable at every Emirate.

Article (6) Appeal 1. Every stakeholder may appeal in writing or electronically to the Head of the competent authority or the Head of the Authority, pursuant to competence assigned, against the administrative penalty taken against such stakeholder within (15) fifteen days as of the notice date of the appealed administrative penalty, provided that such appeal shall be attached with all papers and supporting documents. Such appeal shall be decided on within (30) thirty days as of the submission date. Receiving no reply during the above period shall be deemed a

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Cabinet Resolution of 2024, Concerning the Administrative Violations and Penalties for Acts Violating the provisions of Cabinet Resolution of 2024 Concerning the Telemarketing Regulations 5 rejection, provided that the appellant shall be notified with the decision and its grounds in case of explicit or implicit rejection. 2. As an exception from clause (1) of this article, administrative violations and penalties imposed the Central Bank may be appealed based on Clause (Third) of

Article (6) Clause (4) 50,000 75,000 150,000

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Cabinet Resolution of 2024, Concerning the Administrative Violations and Penalties for Acts Violating the provisions of Cabinet Resolution of 2024 Concerning the Telemarketing Regulations 11 Table No. (2) Annexed to Cabinet Resolution No. (57) of 2024 Concerning the Administrative Violations and Penalties Imposed on Natural Persons Violating the Provisions of Cabinet Resolution No. (56) of 2024 Concerning the Telemarketing Regulations SN Violation Description Legal Reference Administrative Penalty First Time Second Time Third Time 1 Making marketing phone calls by the natural person for products or services in his name or the name of is delegate through a number of a fixed or mobile phone that is licensed in the name of such

Article (7) Publication and Enforcement This Resolution shall be published in the Official Gazette and shall be enforced after (60) sixty days as of the date of publication. Mohammed Bin Rashid Al Maktoum Prime Minister Issued by Us: On: 4 Dhul-Hijjah 1445 A.H. Corresponding to: 10 June 2024 AD

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Cabinet Resolution of 2024, Concerning the Administrative Violations and Penalties for Acts Violating the provisions of Cabinet Resolution of 2024 Concerning the Telemarketing Regulations 6 Table No. (1) Annexed to Cabinet Resolution No. (57) of 2024 Concerning the Administrative Violations and Penalties Imposed on Companies that Violate the Provisions of Cabinet Resolution No. (56) of 2024 Concerning the Telemarketing Regulations SN Violation Description Legal Reference Administrative Fine (AED) First Time Second Time Third Time 1 Failure to obtain prior approval to practice telemarketing activities from the competent authority