HomeFinancial crimes in the UAE
Financial crimes in the UAE are considered some of the most serious offences and are consistently under the close scrutiny of investigative authorities. The country operates a strict legal system, where violations in the banking sector, money laundering, fraud, and abuse of trust are met with the harshest measures. Even minor transactions or reporting errors can be classified as violations, lead to criminal prosecution, and impact a business’s reputation. Foreign nationals involved in such cases additionally face the risk of deportation and a lifetime entry ban. In such circumstances, even the slightest inaccuracy in defence strategy can result in fatal consequences. This is precisely why, in cases of financial crimes in the UAE, it is critically important to entrust your defence to an experienced lawyer who knows all the nuances of local practice.
Our lawyers specialising in financial crimes possess deep knowledge of UAE legislation and the practice of local courts. We develop a defence strategy from the very first moments, participate in interrogations, verify the legality of investigative actions, and work on reducing charges. Our goal is to protect your rights, minimise risks, and find the best solution in a complex situation.
What is considered a financial crime in the UAE
A financial crime in the UAE is any illegal action related to money, securities, property, and corporate activities, aimed at obtaining unlawful benefit or causing harm to other individuals, companies, or the state. Such violations include fraud, forgery, money laundering, illegal investment schemes, cybercrimes in the financial sector, and other forms of misconduct.
The legislation of the UAE considers financial crimes as a serious threat to the economy and society, therefore a zero-tolerance policy is applied to them. An important feature of law enforcement in the UAE is that financial crimes can be regarded not only as commercial disputes but also as criminal cases. This means that the consequences for offenders are significantly stricter.
The legislation of the UAE provides that both individuals and legal entities can be held accountable for financial crimes:
- Individuals: company employees, private entrepreneurs, investors, and executives who commit fraud, abuse their official position, or participate in illegal transactions.
- Legal entities: companies involved in money laundering, corporate fraud, financial reporting manipulations, tax evasion or violations of financial control requirements.
Additional sanctions may be applied to companies, such as suspension of a licence, a ban on conducting business, and even compulsory liquidation.
Relevant laws regulating financial crimes in the UAE
UAE Penal Code (Federal Law No. 31 of 2021, replacing the old Penal Code) – establishes general provisions on crimes and punishments, including criminal liability for fraud, forgery of documents, abuses in the corporate sphere, and illegal financial operations.
Federal Law No. 20 of 2018 on Anti-Money Laundering and Combating Financing of Terrorism – the main law on combating money laundering and financing of terrorism, providing mandatory measures for banks, financial companies, and even non-financial organisations.
Commercial Companies Law № 32 – regulates corporate structures, reporting, and the liability of directors and shareholders for financial violations.
Regulatory acts of the Central Bank of the UAE establish requirements for banks, payment systems, insurance companies, and other entities in the financial sector.
These laws form a comprehensive system in which financial crimes are classified as criminal and can lead to severe punishments, including prison sentences and large fines.
In the UAE, there is an extensive network of bodies responsible for identifying and investigating financial crimes:
- UAE Central Bank: the main supervisory authority in the banking sector. It regulates the activities of financial institutions, implements AML policies, and can initiate inspections and freeze suspicious accounts.
- Financial Intelligence Unit (FIU): a division of the Central Bank that analyses suspicious transactions received from banks and companies and forwards materials to the prosecutor’s office.
- Public Prosecution: leads criminal investigations and prosecutes cases in courts concerning fraud, money laundering, and other financial crimes.
- ESCA (Emirates Securities and Commodities Authority): regulates the stock market, investment funds, and broker activities, preventing manipulation and illegal schemes.
- VARA (Virtual Assets Regulatory Authority): a specialised body for the supervision of cryptocurrencies and virtual assets. It oversees the licensing of crypto exchanges and companies, as well as ensures compliance with AML standards in this sector.
Common types of financial crimes in Dubai and the UAE
The legislation of the country strictly regulates any actions related to the illegal circulation of money, assets, and corporate resources. Even an attempt to commit such a crime may result in criminal punishment, including fines, imprisonment, and a ban on conducting business.
Fraud
Fraud in the UAE encompasses a wide range of activities: from classic schemes involving deception and abuse of trust to complex corporate manipulations. The most common cases involve suspects misleading investors, clients, and partners for personal gain. Such crimes can manifest in fictitious transactions, fake investment projects, and manipulation of financial statements. Under UAE law, fraud is classified as a criminal offence, and those found guilty can face significant prison sentences. Particular attention is given to cases where damage has been caused to foreign investors and government entities.
Cybercrime
With the development of the digital economy, Dubai and other emirates are actively combating cybercrime. This category includes hacking attacks on banking systems, theft of personal data, phishing, and online fraud. In 2012, a separate law on combating cybercrime was adopted in the UAE, providing severe penalties for interference with information systems. Even an attempt at hacking and spreading malicious software can be classified as a criminal offence.
Money laundering
Money laundering from criminal activities is one of the most strictly controlled crimes in the UAE. Federal Law No. 20 of 2018 on combating money laundering and financing of terrorism imposes strict obligations on banks, insurance companies, exchanges, and even law firms. Violations are punishable by large fines, asset confiscation, and lengthy prison sentences. The UAE actively operates the Financial Intelligence Unit, which analyses suspicious transactions and forwards cases to the prosecution. Suspicion of money laundering can lead to account freezes and a travel ban from the country.
Bribery and corruption
Despite the high level of transparency in Dubai’s business environment, cases of corruption and bribery still occur. Such crimes may include bribing officials, abuse of authority, and unlawful advantages in securing government contracts. In accordance with UAE anti-corruption legislation, penalties can range from substantial fines to lengthy prison sentences. Responsibility lies not only with the individuals who gave or received the bribe but also with the companies on whose behalf the offenders acted.
Embezzlement and abuse of trust
Embezzlement of someone else’s property and abuse of trust are often encountered in the corporate sphere. This can involve the illegal use of company funds, misappropriation of partners’ and investors’ assets, as well as manipulation of trust funds. In the UAE, such actions are classified as criminal offences and entail not only compensation for damages but also actual imprisonment. Particular attention is paid to corporate directors and managers who bear a fiduciary duty to shareholders and partners.
Bank fraud
Banking crimes include the illegal use of credit cards, fictitious credit schemes, and obtaining loans using forged documents. Such cases are often identified by the Central Bank of the UAE and banking compliance services. Penalties range from substantial fines to long prison terms. Foreign nationals, in particular, who use the UAE banking system for international schemes of illegal enrichment are punished especially severely.
Forgery and falsification of documents
Forgery of documents is another serious category of crimes in Dubai. It may include forged signatures, falsified financial reports, fake company stamps, or the forgery of passports and visas. Such actions are classified as a criminal offence and entail lengthy prison sentences, deportation of foreign nationals, and a lifetime ban on conducting business in the UAE. Courts treat such cases with particular severity as they undermine trust in the country’s legal system.
Tax evasion (in ADGM/DIFC)
Although in most emirates corporate tax was introduced relatively recently (from 2023), tax evasion has become the subject of strict control. In free financial zones such as ADGM (Abu Dhabi Global Market) and DIFC (Dubai International Financial Centre), their own regulatory authorities and taxation rules are in effect. Companies are required to submit accurate reports and pay tax in accordance with the Federal Corporate Tax Law. Violations can lead to significant fines, licence revocation, and criminal liability for executives.
Insider trading
Insider trading is regulated by the Emirates Securities and Commodities Authority. This refers to the use of confidential information when conducting transactions with securities. In the UAE, such actions are considered a serious financial crime that undermines trust in the capital market. Penalties may include multimillion-dollar fines, confiscation of profits, and prison sentences. In recent years, strict measures have been implemented in Dubai to protect investors and ensure transparency in the stock market.
Punishments for financial crimes in the UAE
Depending on the severity of the crime and its classification, the prison term can range from 1 year to 15 years. For fraud or embezzlement, sentences often range from 1 to 5 years. For large-scale cases of money laundering or corruption, the punishment can reach 10–15 years. In particularly severe cases, where the crime involves an international scale or undermines the banking system, the punishment approaches the maximum possible.
Penalties in the UAE are also strict and can reach several million dirhams. For example, for tax evasion in free zones, a company may be fined tens of millions of dirhams. For money laundering, fines start from 500,000 AED and above. For legal entities, fines often exceed the amounts applied to individuals.
An important feature of punishments is the possibility of full or partial confiscation of property acquired illegally. This may include bank accounts, real estate, securities, vehicles. The court may order both the confiscation of specific assets and their sale in favour of the state.
At the investigation stage, the prosecutor’s office and the Central Bank may issue an order to freeze bank accounts and seize assets until a final verdict is delivered. Such a measure is often applied to prevent funds from being transferred abroad and to ensure possible confiscation.
For foreign citizens, one of the most serious consequences is deportation. Even after serving a prison sentence, a foreign citizen may be expelled from the country and receive a lifetime ban on entering the UAE. This is especially important to consider for businessmen and investors whose activities are connected with being present in the region.
Persons and companies convicted of financial crimes may lose the right to conduct business activities in the country. Companies may be removed from the register, executives may be prohibited from holding managerial positions, and licences for activities may be revoked. This means the actual withdrawal of business from the UAE market and significant losses.
Why you need a lawyer for financial crimes in the UAE?
Investigations of financial crimes in the UAE often involve freezing bank accounts, seizing assets, international requests, and complex financial examinations. A lawyer plays a key role in challenging improper methods of evidence collection, identifying violations in the work of investigative authorities, and protecting the client’s rights at all stages of the process. Without professional defence, a suspect risks facing unjustified expansion of charges and excessively harsh preventive measures.
Financial crimes are rarely limited to criminal law alone. They often involve banking and corporate law, tax regulation, and international agreements. Only a lawyer familiar with these norms as a whole is capable of properly constructing a defence and minimising the consequences for the client.
An important part of a lawyer’s work is the analysis of the evidence base. They can question the legality of obtaining bank statements, prove that the client’s actions were not intentional, achieve the reclassification of charges from a serious article to a less severe one. In some cases, this allows replacing imprisonment with a fine or an administrative penalty.
In many cases, the key argument becomes financial expertise. An experienced lawyer involves independent auditors and experts, analyses the movement of funds and accounting reports, identifies errors in the interpretation of transactions by the investigation. Such work makes it possible to prove the absence of a crime or significantly mitigate responsibility.
A lawyer specialising in financial crimes in the UAE accompanies the client during interrogations at the police and prosecutor’s office, at the preliminary investigation stage, in court, including appeal. They can also negotiate with regulators to reduce sanctions or settle the case out of court.
Special aspects for foreign citizens
Foreign citizens working and residing in the UAE occupy a significant part of the country’s business and financial sector, which is why they are often involved in investigations of financial crimes. Even if a violation occurred in an international transaction or in a foreign bank but affected the interests of UAE residents, local courts may take the case under consideration. For expats, this means that their actions may be assessed under multiple jurisdictions at once, making defence particularly challenging.
One of the main risks is a travel ban – a prohibition on leaving the country, which may be imposed during the investigation. In such cases, foreign citizens effectively lose their freedom of movement and the ability to return home until the end of the legal process. Additionally, freezing of bank accounts and assets may be applied, which leads to an inability to conduct business or cover everyday expenses.
For expats, there is also an increased likelihood of deportation after serving a sentence, even if it concerns fines or suspended sentences. The authorities strive to maintain the country’s reputation as a safe jurisdiction for investors, so foreign citizens may face stricter measures than local residents.
Moreover, it is often more difficult for foreigners to navigate the legal system of the UAE. The legislation operates on a mixed model of Sharia and civil law, and investigative bodies and courts conduct proceedings predominantly in Arabic. Without a professional lawyer familiar with banking, corporate, and tax regulations, an expat risks finding themselves in an extremely vulnerable position.
Speak with a financial crimes lawyer in Dubai today
Our lawyers have a deep understanding of UAE legislation, including criminal law, banking regulation, and antitrust norms. We assist clients at all stages: from the initial interrogations to defence in court and appeal. The most important task is to identify procedural errors, challenge evidence collection methods, refute intent, and reduce the classification of charges.
We also provide financial expertise, which allows us to dismantle the prosecution’s position and prove the legality of the origin of funds. For foreigners, we ensure protection not only within the framework of criminal proceedings but also in matters of immigration, deportation, and visa blocking.
Each case is unique, and it is the professional strategy that determines the outcome. Do not postpone your defence until tomorrow; in financial matters, every hour counts. Contact our lawyers in Dubai today to protect your rights, business, and reputation. We are ready to act immediately.
