Freezing of Funds as per UAE AML Law
This article discusses Federal Decree by Law No 20 of 2018 on Anti-Money Laundering and Combating the Financing of Terrorism and Financing of Illegal Organizations in United Arab Emirates. Here we will see Freezing of Funds as per UAE AML Law in detail.
Governor can freeze suspicious funds
The Governor or his delegate shall have the right to freeze suspicious funds deposited at financial institutions for no more than (7) seven working days, in accordance with the rules and controls stipulated in the Implementing Regulation of the present Decree-Law, renewable by order of the public prosecutor or his delegate.
Public Prosecution can Track Suspicious
The Public Prosecution and the competent court, as the case may be, shall request the identification, tracking, or evaluation of suspicious funds, proceeds and instrumentalities or of whatever is of equivalent value or seizing or freezing them if they are the result of, or in connection with, the crime without pre-advising the owner and issuing a travel ban until the investigation or trial is completed.
The Public prosecution and the competent court, as the case may be and when necessary, shall take the necessary decision to prohibit trading or disposing of such funds, proceeds and instrumentalities and take the necessary actions to prevent any act aiming at evading related freezing or seizing orders, without prejudice to the rights of bona fide third parties.
All freezing orders of funds held by financial institutions licensed by the CBUAE may be only be executed through the CBUAE.
Appeal against Freezing of Funds
Any grievance against the Public Prosecution’s decision to freeze or seize shall be filed in accordance with the provisions of the present Article before the competent court in whose jurisdiction the public prosecution issuing the decision is located. If the grievance is rejected, a new one may be lodged only after the expiry of three months from the date of rejection of the previous one, unless there is a serious reason to do so before the expiry of that period.
The grievance shall be filed by submitting a report to the competent court. The president of the court shall set a date to review the report and notify the plaintiff and any concerned parties of the date.
The public prosecution shall submit a memorandum expressing its opinion on the grievance. The court shall issue its decision on this grievance within no more than (14) fourteen business days from the date of its submission.
The Public prosecution and the competent court, as the case may be, shall appoint whomever they find suitable to manage the funds, proceeds and instrumentalities seized, frozen or confiscated, also allowing the receiver to sell or dispose of it, even before the issuance of a court decision if needed.
The proceeds of the sale shall be transferred to the UAE treasury in case of a final judgment of conviction. These funds shall be earmarked to any rights awarded legally to any party acting in good faith, proportionately to its value.
The Implementing Regulation of the present Decree-Law shall define the rules and procedures for implementing the dispositions of the present Article.