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Penalties for a Felony for Embezzlement

Hayley Chowdhry by Hayley Chowdhry
January 28, 2025
in Financial
A A
Christopher W. Adams of Adams & Bischoff

Christopher W. Adams of Adams & Bischoff

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Misdemeanors, felonies, and infractions are the three subdivisions of crime under the Federal Decree-Law No.31 of 2021 of the United Arab Emirates (UAE) penal code on Issuance of Crimes and Penalties Laws. This law provides three penalties for misdemeanors: a jail term ranging from one month to three years, over 10,000 AED in fines, and “Diya,” otherwise known as blood money. Capital punishment, life jail term, retaliation punishment, and brief jail term are the penalties provided in the law for a felony. In defining the concepts, a life jail term refers to relegating the convict to prison for life, while the sentence for a brief jail term ranges from three to fifteen years.

Definition of Embezzlement

Criminal defense attorney Christopher W. Adams of Adams & Bischoff states that embezzlement is the act of an individual legally obtaining assets and then fraudulently distributing the assets acquired. The legal provisions for embezzlement are under “breach of trust.” Article 453 of the UAE Penal Code on ‘breach of trust’ categorizes the crime of embezzlement as a misdemeanor.

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Penal Codes for Embezzlement

Article 453 contains a provision for embezzlement. According to the requirement, the penalty for individuals found guilty of embezzlement is a jail term of up to three years or payment of a fine. Article 454 of the penal code provides that should an individual take another individual’s lost possession to make it their own, the penalty for such offenses is a jail term for a maximum of 2 years or a fine that cannot exceed 20,000 AED.

As contained in Article 455, attempting to embezzle or embezzling a collateral movable property that they used for a mortgage for themselves or another person attracts the same penalty as provided in Article 454. Furthermore, the Article provides that individuals who own the movable property and are listed as the receivers of the embezzled property would also have the same penalty as in Article 454.

Cases of Embezzlement between the Family

Article 10 of Federal Law No. 35 1992 concerning criminal laws provides provisions for the reporting and legal actions concerning embezzlement within the family. As contained in this Article, one cannot lodge illegal activities in cases of embezzlement within the family where the perpetrator is the spouse, ascendant, or descendant of the victim. However, you can lodge a criminal action if there is a complaint from the victim or the victim’s legal representative, which can be either verbal or written. Furthermore, in cases where the victim is the spouse of the perpetrator, then a complaint is required from the victim or the victim’s representatives. Also, if the victim is either the ascendant or the descendant of the perpetrator, a complaint is needed from the victim or the victim’s representative.

The code provides for clauses regarding the embezzled property. According to the law, the authorities should neither judicially nor administratively seize stolen property. Also, the embezzled property should not have a lien in favor of someone else.

Judgment Concerning Cases of Embezzlement

The public prosecution in a misdemeanor breach of trust can stick with the sentence passed if they have made the judgment. Even if the perpetrator appeases the victim and the victim grants pardon or waives his rights as a victim, the public prosecution still holds the discretion to stick with the sentence. Article 84 of the UAE penal code caters to this. Ultimately, understanding the complexities of embezzlement laws in the UAE is essential for navigating legal challenges effectively. Staying informed about your rights and responsibilities ensures compliance and can help mitigate potential repercussions. Consulting experienced legal professionals familiar with UAE laws provides invaluable guidance, particularly in cases involving nuanced family provisions or complicated property disputes.

Seeking Professional Legal Assistance

Legal counsel can assist in crafting an informed defense or proactive strategy, whether for prevention or resolution. Emphasizing proactive legal awareness and adhering to established procedures strengthens one’s position within the framework of the UAE penal code and aids in avoiding severe penalties.

Hayley Chowdhry

Hayley Chowdhry

Business Editor

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