White Collar Crime & Investigations
What are the AML laws in the UAE and who do they apply to?Anti-Money Laundering and Combatting the Financing of Terrorism (“AML/CFT”) laws and regulations in the United Arab Emirates (UAE) are designed to help the country combat money laundering and the financing of terrorism. The main AML/CFT legislation are as follows:
The Federal Decree-Law No. (20) of 2018 On Anti-Money Laundering and Combating the Financing of Terrorism and Financing of Illegal Organisations and implementing regulation as amended by Federal Law by Decree No. (26) of 2021; and
Cabinet Decision No. (10) of 2019 Concerning the Implementing Regulation of Decree Law No. (20) of 2018 On Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organisations; and
Federal Penal Law No. 31 of 2021.
These laws apply to various entities and individuals operating within the UAE, including Financial Institutions, Designated Non-Financial Businesses and Professions (DNFBPs), and individuals who engage in financial transactions.
What are the sanctions for breach of the AML laws and regulations? Both individuals and companies are capable of being punished under the AML/CFT regulations. Sanctions can include fines and imprisonment, as well as licence termination and ensuing reputational damage. These consequences are designed to prevent individuals and entities from engaging in money laundering and/or the financing of terrorism activities.
Article (22) from Federal Law by Decree No. (26) of 2021 Amending Certain Provisions of Federal Law by Law No. (20) of 2018 On Anti-Money Laundering, Combating the Financing of Terrorism and financing of Illegal Organisations states that a penalty of imprisonment for a period not exceeding 10 years and/or a fine not less than AED 100,000 and not exceeding AED 5,000,000 shall be imposed on anyone who breaches the AML/CFT laws.
Sanctions can include fines and imprisonment, as well as licence termination and ensuing reputational damage. These consequences are designed to prevent individuals and entities from engaging in money laundering and/or the financing of terrorism activities.
Is there corporate criminal liability for money laundering offences?According to Article (23) from the AML Law, legal persons, such as companies, legal person whose any of his representatives, directors, or agents have committed money laundering offences, can be subject to criminal penalties. These penalties can include fines, the confiscation of assets, and other punitive measures.
What is the legal framework governing bribery and corruption in the UAE?In the UAE, there is not a single comprehensive law governing bribery and corruption; instead, multiple laws and regulations, both at the federal and local levels, work together to address these issues. At the federal level, the primary legislation concerning bribery and corruption is as follows:
The UAE Federal Penal Code (Federal Law No. 31 of 2021, as amended by Federal Decree – Law No. 36 of 2022).
What constitutes a ‘bribe' in the UAE?There is no precise legal definition of 'bribery' in UAE law. However, the United Nations Convention Against Corruption, as stated under Federal Decree Law 8/2006, defines 'bribery' as a criminal act when the following elements are intentionally committed:
The act of promising, offering, or providing, directly or indirectly, an improper advantage to a public official, whether for the benefit of that official, another person, or entity, with the purpose of influencing the official to perform or abstain from performing their official duties.
The act of a public official, directly or indirectly, requesting or accepting an improper advantage, whether for their own benefit, another individual, or an entity, with the intention of influencing the official's behavior in the execution of their official duties.
It is important to note that in the UAE both public and private sector bribery are covered in the legislation.
What are the criminal consequences of bribery in the UAE?As per Article 236(bis), the UAE imposes strict penalties for bribery-related offenses. Public servants, including foreign officials, and employees of international organisations who accept bribes can be sentenced to a maximum of 5 years in prison and fined an amount equal to the value of the received benefit.
Individuals who accept bribes to influence public officers can face imprisonment for at least one year or a fine of up to AED 20,000.
Those offering bribes to public servants may be imprisoned for up to 5 years and fined an amount equivalent to the value of the offered or given benefit.
In the private sector, both those accepting and offering bribes may receive a prison sentence of up to 5 years, a fine equal to the value of the bribe, and the confiscation of the bribe itself. Furthermore, deportation may be considered as a legal consequence of bribery, determined by the court and depending on the severity of the case.
Is it possible for a company to be held responsible for acts of bribery committed by its management or other staff members?Yes, Article 65(1) of the amended Federal Penal Code, states that legal entities, excluding government entities and public institutions, can be held liable for offenses committed by their representatives, directors, or agents on their behalf. In terms of criminal consequences for bribery, the company can also be subject to fines and penalties, with a maximum limit of AED 50,000. The individual responsible for the offense will be held personally liable
