Home News Middleeast News Tougher penalties for financial fraud
Tougher penalties for financial fraud
News - Middleeast News
Wednesday, 30 December 2009 08:01

A law imposing tough penalties aimed to safeguard public and private funds in Dubai has been issued by His Highness Sheikh Mohammed bin Rashid Al Maktoum , Vice-President and Prime Minister of the UAE, in his capacity as Ruler of Dubai.

Designed to protect Dubai's economic interests and preserve financial rights of individuals, the new law comes in line with Dubai's ongoing efforts to eradicate all forms of fraud, enhancing the emirate's position as a global business hub.

The law facilitates redemption of funds fraudulently seized by individuals from either public or private sources. Convicted persons will face five to 20 years of prison.

The law permits immediate release of convicts once they return the money to their lawful owners in full or through negotiated settlement with creditors.

Imprisoned convicts will be granted access to conduct all necessary external communications that guarantee timely redemption of funds. The law is effective immediately.

"This is good news. This will increase investors' confidence in the UAE. The tougher penalties will definitely act as deterrent for any fraudulent act," said KK Sarachandra Bose, partner/corporate, commercial and contract lawyer at Dar Al Adalah Advocates & Legal Consultants.

Mark Beer, Chairman of British Business Group in Dubai and the Northern Emirates, and a legal expert said: "It is a further step in enhancing international trust in the legal system in Dubai and its ability to protect investors; the protection being for their own investment and against corruption by public officials. The focus of Dubai's leadership on transparency, and the tough stance taken against corruption is an important reason for Dubai's premier position for foreign direct investment in the region, as well as the reason why so many global businesses operate from Dubai as a gateway to the two billion consumers nearby."

Ahmed Abdelwahab of Abdelwahab & Associates, Commercial Arbitrator at RAK Chamber of Commerce, said: "The law will restrict fraudulent cases. This can have a considerable positive impact on the economy by improving the level of trust in the market. I believe that the law has two main advantages – first, private funds shall be well covered by a strong protection, and secondly, the law permits immediate release of convicts clause will encourage amicable settlement of disputes." - business24-7

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