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Time of India
20 hours ago
- Time of India
UAE warns: Don't transfer money to strangers or risk 10-year jail
Transferring money to strangers, no matter the intent, may carry criminal penalties under UAE law/Representative Image TL;DR: Transferring or depositing funds into unknown or unverified accounts especially at ATMs for strangers is a criminal offence under UAE law. Convictions for money laundering under Federal Law No. 20/2018 can lead to 1–10 years in prison and fines from AED 100,000 to AED 5 million. Federal Decree Law No. 34/2021 also applies for similar acts conducted via electronic means, with penalties up to 10 years imprisonment and up to AED 5 million fine. The UAE Public Prosecution urges the public to exercise extreme caution, even compliant intentions don't exempt individuals from legal liability. In light of recent legal cases, the UAE authorities have issued a strong warning: helping strangers deposit or transfer money, even as a favour, can result in criminal charges for money laundering. Under UAE laws, individuals who use their personal identity to deposit or move funds for unknown parties can face up to ten years imprisonment and hefty fines, even if they were unaware of the funds' origin or intent. This latest advisory reaffirms that negligence or good faith does not exempt one from legal accountability under the country's strict anti-financial crime statutes. The Legal Framework: Understanding the Penalties According to Federal Law No. 20 of 2018 on Combating Money Laundering and Terrorism Financing, knowingly transferring funds associated with criminal proceeds with intent to disguise their source constitutes a money laundering offence. Article 22 of this law sets the punishment at: 1 to 10 years in prison Fines ranging from AED 100,000 ($27,225) to AED 5 million ($1.36 million), or both Under Federal Decree Law No. 34 of 2021 on Combating Rumours and Cybercrimes, similar penalties apply when electronic means are used to conceal or move illicit funds: Up to 10 years of imprisonment Fines up to AED 5 million, or both These laws emphasise that intent to obscure a transaction, even unintentionally, can expose individuals to severe criminal liability. Real-World Risks: Why Such Transactions are Illegal The UAE's strict stance stems from its ongoing commitment to combat money laundering, terrorism financing, and financial fraud, all of which can exploit innocent citizens through seemingly minor acts like transferring money on behalf of others. Criminal networks often rely on unsuspecting individuals, sometimes referred to as 'money mules,' to move illicit funds without detection. By using regular bank customers to conduct these transactions, criminals attempt to break the audit trail and avoid scrutiny from law enforcement or financial monitoring units. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 15 most beautiful women in the world Undo Therefore, the law criminalizes not just the act of laundering money, but also any willful or negligent facilitation of such transactions, even when carried out unknowingly. The goal is to close legal loopholes and make it harder for criminal enterprises to mask their financial trails. Public Prosecution: Official Guidance and Risk Advisory The UAE Public Prosecution has issued clear statements advising residents never to accept requests to transfer or deposit money on behalf of strangers. It reiterated that using one's ID card or banking credentials to complete such transactions, even under a seemingly legitimate pretext is legally risky and could lead to formal charges. Authorities emphasise that individuals should treat these cases as non-optional: even if persuaded or tricked, they can still be held responsible unless they immediately report the incident to authorities. Best Practice: If You Receive Unexpected Money or Requests UAE authorities and banks recommend these steps for safety: Refuse to transfer or deposit money for someone you don't personally know. Do not move or withdraw unexpected funds received through a stranger's mistake, they may be traced back to criminal activity. Report immediately to your bank and relevant authorities, such as the Dubai Police via 901 or the anti-fraud hotline. Maintain records of all communications and responses as evidence. These measures help protect individuals from being inadvertently involved in financial irregularities. What may seem like an innocent gesture, transferring money on behalf of a stranger can lead to grave legal consequences in the UAE. Under strict anti-money laundering and cybercrime laws, individuals who facilitate dubious transactions, even unknowingly, could face up to a decade in prison and millions in fines. Legal and security authorities underline that ignorance of the law is no defence, and responsible financial conduct must be the standard in all personal banking interactions.
Gulf Today
28-06-2025
- Gulf Today
Warning on depositing money into unknown accounts
In the UAE, depositing money into bank accounts of unknown or unidentified individuals is considered a behaviour that may lead to legal accountability, especially if the recipient account is later found to be linked to organised crimes such as money laundering, terrorist financing, or drug trafficking. Several cases have occurred where individuals were prevented from making bank transfers due to suspicions about the nature of the recipient accounts. Investigations revealed that some depositors acted on requests from strangers without realising the severity of their actions. Lawyer Badr Abdullah Khamees emphasised that anyone transferring or depositing money must verify its source, its legality, the recipient, and the purpose of the transaction. He warned that transferring money to unknown individuals, especially via ATMs under the pretext of them not having ID cards, is a risky behaviour. The person using their identity for such deposits bears legal responsibility, even if they are unaware of the beneficiary. The funds could be part of drug trafficking, terrorist financing, or other crimes. Khamees affirmed that article (2) of the Anti-Money Laundering and Counter-Terrorist Financing Law states that anyone who transfers, moves, or uses funds knowing they are proceeds of crime, with the intent to conceal or disguise their origin, is committing a money laundering offense. Khamees added that Article 22 of the law imposes penalties of 1 to 10 years' imprisonment and a fine ranging from Dhs100,000 to Dhs5 million, or either of these penalties. Legal Consultant Dr. Ali Musbeh stressed that even unintentional assistance in depositing funds can place the individual under legal scrutiny, regardless of their intent. Dr Musbeh highlighted that Federal Law No. 20 of 2018 confirms that merely moving or depositing funds from an illicit source, with knowledge of their origin, constitutes a money laundering crime and courts have previously convicted individuals who transferred funds at the request of friends or acquaintances without questioning the source or purpose, only to discover the accounts were linked to money laundering networks. Legal Consultant Mohammed Hussein noted that this phenomenon is on the rise, with some individuals exploiting others' sympathy outside exchange offices, claiming they cannot deposit the money themselves. He warned that simply depositing funds into a suspicious account, even without prior knowledge, could lead to accusation and potential punishment unless the individual can prove they were a victim of fraud or had no malicious intent.
