Law Against Fraud In The UAE 2022

Fraud is a criminal offense that affects many people, as individuals fraudulently obtain unlawful benefits. This crime is a punishable offense under the law of the UAE. In UAE, a person found guilty of fraud can attract the punishment of imprisonment and a fine. Article 399 of the Federal Law Number 3 of 1987 of the Penal Code talks about the crime and the law against fraud in the UAE 2022. If you are facing fraud charges or need legal advice, consult with experienced Criminal Lawyers in Dubai who can provide expert guidance and representation to ensure the best possible outcome.
 

Article 399
 

Article 399 of the UAE penal code defines fraud as ‘’ Shall be sentenced to detention or to a fine, whoever succeeds in appropriating, for him or for others, movable property, a deed or a signature thereon, cancellation, destruction or amendment thereof through deceitful means or use of false name or capacity, whenever this leads to deceit the victim and have him give away shall be sentenced to the same penalty, whoever disposes of an immovable or movable property being aware that it is not his property, that he is not entitled to dispose of it or disposes of it knowing that he previously disposed of, or contracted, it whenever such act of disposition causes prejudice to others.’’
 

Establishment of fraud
 

A person is said to commit the crime of fraud if the following elements have been established,
 

1. If the criminal has the intention to deceive the person in question to gain monetary benefit.
2. If any unlawful or fraudulent means is used as misrepresentation of fact, concealment of identity, destruction or amendment of facts, etc.
3. If the victim has fallen for the trap and believed the existence of the false information resultantly willfully has given his valuable/money/property etc. to the person deceiving.
    

Commercial anti-fraud law
 

In 2016, another anti-fraud law was sanctioned in the UAE by giving Federal Law Number 19 of 2016 concerning ‘combating commercial Fraud’. This new regulation is usually alluded to as the ‘commercial anti-fraud regulation’ and tries to get more severe anti-fraud measures including combatting intellectual property violations. The new ‘anti-fraud regulation’ envelops the whole UAE and explicitly applies to the free zones in the UAE too.
 

Punishment
 

The crime of fraud can be punished with imprisonment which can be 6 months and can go up to 3 years.  The imprisonment can go up to 6 years if the fraud committed is of serious nature.  The amount of fine in case of fraud can be DH 30,000 to 60,000. In case someone has attempted to commit fraud the punishment will be imprisonment of 2 years and a fine of 20,000.
 

It’s very important to be careful while doing transactions or transferring properties. Dealing with other parties can only be safe if you are sure about their powers, ownership, and other lawful capacities. Before concluding any transaction be well aware and cross-check everything. Availing of a legal consultancy of an expert can be very beneficial.