On March 14, 2024, the Dubai International Financial Centre (DIFC) announced the enactment of the DIFC Law Amendment Law, No. 1 of 2024 (the Act), which amends select legislation, including the Operating Law.

What are the amendments relating to data retention?

The amendments to the Operating Law relate to the Organisation for Economic Co-operation and Development (OECD) requirements regarding record retention following the winding up of an entity. The Act amends Part 5, Chapter 2 of the Operating Law relating to powers and remedies of the registrar, particularly under Section 32 relating to the powers to strike off names of registered persons from the public register.

The Act adds subsections 18 and 19 to Section 32 that respectively state:

• where the Registrar strikes off the name of a registered person from the public register under Article 18 of the Act, the persons comprising the board, council, or governing body of the registered person immediately prior to the strike-off shall be obliged, on a joint and several basis, to keep the registered person's books and records for a period of six years from the date on which the registered person's name is struck-off the public register and, upon receipt of a notice from the Registrar, make such information available to the Registrar as specified in the notice, subject to the provisions of Article 32(19); and
• where a registered person had a registered auditor immediately prior to strike-off or where it did not have a registered auditor, but individuals on its board or governing body acted in an executive or managerial capacity in respect of the registered person (executive members), then the responsibilities set out in Article 32(18) shall rest with the registered auditor or executive members on a joint and several bases, as applicable.

The abovementioned amendments came into effect on March 8, 2024.

You can read the press release here and the Act here.