White-collar crime represents one of the most sophisticated and consequential forms of criminal activity in contemporary legal systems. In highly developed commercial jurisdictions such as the United Arab Emirates, the implications of financial crime extend beyond individual wrongdoing. It strikes investor confidence, disrupts financial stability, and exposes institutions to reputational harm. The UAE’s position as a global financial and trade hub makes the prevention and prosecution of white-collar crime not merely a criminal justice issue, but a matter of national economic policy.
These crimes generally include fraud, embezzlement, breach of trust, forgery, bribery, corruption, insider trading, market manipulation, cyber-enabled financial crimes, and money laundering. Unlike traditional offences involving physical violence or overt public disorder, these offences often occur within corporate entities, financial institutions, or public offices, and are frequently cross-border in nature. The complexity of such crimes demands an equally sophisticated legal and regulatory response.
Fraud, Breach of Trust, and Criminal Misappropriation
In the UAE, the foundation of white-collar crime enforcement lies in the Federal Decree-Law No. 31 of 2021 (UAE Penal Code). Federal Decree-Law No. 36 of 2022 amends the UAE’s primary criminal statute provisions of the Crimes and Penalties Law (Federal Decree-Law No. 31/2021). According to Article 66 except for government bodies and official departments and public authorities and establishments, juristic persons shall be held criminally liable for the crimes committed by their representatives, directors, or agents acting on their behalf or in their names. They may only be sentenced to a fine, confiscation and criminal measures prescribed for the crime by the law. If the law provides for a principal penalty for the crime other than the fine, then the penalty shall be restricted to a fine of not more than AED five million (5,000,000) unless otherwise provided by law, and such matter shall not prevent from imposing statutory punishments against the perpetrator of the crime, in person, as specified by the law. Essentially, it further strengthens provisions against bribery, corruption, and corporate crimes while introducing stricter penalties. It reinforces corporate criminal liability (up to AED 5 million fines) while enhancing measures against financial crimes, money laundering, and data breaches.
For a company or an institution to be held criminally liable under Article 66 of Federal Law No. 36 of 2022, the following conditions must be met;
In other words, a legal entity may be held responsible where crimes are committed in its name or for its benefit by directors, managers, or representatives. This principle reflects the increasing global recognition that corporate structures cannot shield unlawful conduct.
Fraud typically arises where an individual employs deceptive means to induce another to part with money or property. The essence of the offence lies in intentional misrepresentation coupled with unlawful financial gain. In commercial contexts, fraud may involve falsified contracts, inflated invoices, misrepresented investment schemes, or misleading financial disclosures.
Breach of trust, by contrast, occurs where property or funds are lawfully entrusted to an individual but subsequently these are misappropriated. This offence is common in agency arrangements, partnership structures, shareholder disputes, and employment relationships involving financial responsibility. The law recognizes that fiduciary relationships demand a high degree of honesty and loyalty and any deviation from such obligations is likely to attract criminal liability.
Further, forgery and use of forged documents are also treated as serious offences. The falsification of commercial instruments, financial statements, corporate resolutions, or official documents may result in imprisonment, fines, and confiscation of proceeds.
Anti-Money Laundering (“AML”) and Financial Integrity
Money laundering represents one of the most significant white-collar offences in global commerce. It involves concealing or disguising the origins of funds derived from criminal activity in order to integrate them into the legitimate financial system. The UAE’s primary legislative instrument in this regard is Federal Decree by Law No. (10) of 2025 Regarding Anti-Money Laundering and Combating the Financing of Terrorism and Proliferation Financing which has repealed the earlier Federal Decree by Law No. (20) of 2018 and No. 26 of 2021. This law adopts a broad definition of laundering activities, encompassing the conversion, transfer, acquisition, possession, or concealment of proceeds of crime.
The enforcement architecture is anchored by the Financial Intelligence Unit (“FIU”) operating under the supervision of the Central Bank of the United Arab Emirates, however, the FIU operates independently by legal and regulatory mandate as the central national agency with sole responsibility for performing the following functions:-
a. Receiving and analysing Suspicious Transaction Reports (STRs) from Financial Institutions (FIs) and Designated Non-Financial Business Professions (DNFBPs), and disseminating the results of its analysis to the Competent Authorities of the State;
b. Receiving and analysing reports of suspicious cases from the Federal Customs Authority;
c. Requesting additional information and documents relating to STRs, or any other data or information it deems necessary to perform its duties, from FIs, DNFBPs, and Competent Authorities, including information relating to customs disclosures;
d. Cooperating and coordinating with Supervisory Authorities by disseminating the outcomes of its analysis, specifically with respect to the quality of STRs, to ensure the compliance of FIs and DNFBPs with their statutory AML/CFT obligations;
e. Sending data relating to STRs and the outcomes of its analyses and other relevant data, including information obtained from foreign FIUs, to national Law Enforcement Authorities, prosecutorial authorities and judiciary authorities when actions are required by those authorities in relation to a suspected crime;
f. Exchanging information with its counterparts in other countries, with respect to STRs or any other information to which it has access.
The UAE National Anti Money Laundering and Combatting Financing of Terrorism and Financing of Illegal Organizations Committee (NAMLCFTC) is the primary body for policy making and issuing regulations to combat money laundering and terrorism financing in the UAE.It oversees national risk assessments, develops strategies, and ensures compliance with international standards.
Under the aegis of NAMLCFTC and for the effective performance of its functions, the FIU maintains operational protocols with numerous national and international Competent Authorities. Financial institutions and designated non-financial businesses are required to implement robust compliance measures, including customer due diligence, beneficial ownership verification, transaction monitoring, and suspicious transaction reporting, conduct internal audits etc. Failure to comply may result in heavy administrative penalties, licence suspension, and criminal prosecution. Further, confiscation of illicit proceeds forms a central pillar of AML enforcement. The law empowers authorities to freeze bank accounts, seize assets, and impose travel bans pending investigation. Upon conviction, courts may order confiscation of assets directly or indirectly derived from criminal conduct. Also, the fines and penalties under the Federal Decree by Law No. (10) of 2025 have been increased to AED 10 million for Individuals and AED 100 million for entities. Further, Article (6) of the said decree specifically provides that;
1. Where the Crime is proven, the Court shall order the confiscation of the following:
a. The Criminal Property;
b. Any Funds owned by the offender equivalent to the value of the Criminal Property, in cases where such property has been mingled with legitimate Funds, cannot be seized, or is subject to the rights of bona fide third parties.
2. Confiscation shall be enforced irrespective of whether the Criminal Property is in the possession or ownership of the offender or of another party, without prejudice to the rights of bona fide third parties.
3. If it is impossible to order Confiscation of the Criminal Property or of Funds equal in value thereto, due to their unavailability or the existence of bona fide third-party rights, the Court shall impose a fine equivalent to their value at the time of the commission of the Crime.
4. The anonymity of the perpetrator, the absence of their criminal liability, or the lapse of the criminal case in relation to a punishable Crime pursuant to the provisions of this Decree by Law shall not preclude the Court, sua sponte or upon the request of the Public Prosecution, as the case may be, from ordering Confiscation of the seized Criminal Property if its connection to the Crime is established.
This is the key provision that directly authorizes courts to permanently deprive convicted persons of illicit proceeds resulting from money laundering, terrorist financing, or related offences. UAE criminal courts have upheld extensive confiscation orders in money laundering cases, ordering imprisonment, fines and asset forfeiture (including assets of equivalent value) pursuant to AML provisions, demonstrating robust judicial enforcement of freezing and confiscation principles under Article 6 and related provisions.
For expert guidance on fraud investigations, corporate criminal liability, regulatory enforcement, or cross-border financial crime matters in the UAE, please contact the author, Rajiv Suri at r.suri@alsuwaidi.ae