What constitute Money Laundering in UAE

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 What constitute Money Laundering in UAE in detail.

Who is a Perpetrator in crime of Money Laundering:

Any person, having the knowledge that the funds are the proceeds of a felony or a misdemeanour, and who wilfully commits any of the following acts, shall be considered a perpetrator of the crime of Money Laundering:

Transferring or converting proceeds or conducting any transaction with the aim of concealing or disguising their Illegal source.

Concealing or disguising

Concealing or disguising the true nature, source or location of the proceeds, or the method involving the disposition, movement or ownership of the Proceeds or rights related thereto.

Acquiring, possessing or using proceeds upon receipt.

Assisting the perpetrator of the predicate offense to escape punishment.

Independent Crime

The crime of Money Laundering is considered as an independent crime. The punishment of the perpetrator for the predicate offence shall not prevent his punishment for the crime of Money Laundering.

Proving the illicit source of the proceeds should not constitute a prerequisite to sentencing the perpetrator of the predicate offence.

Without prejudice to the provisions of Federal Law No. (3) of 1987 referred to, and Federal Law No. (7) of 2014 referred to herein:

Is guilty of the crime of financing terrorism whoever intentionally commits any of the following:

Proceeds owned by a terrorist organisation

Any of the acts specified in Clause (1) of Article (2) of the present Decree-Law, if he is aware that the proceeds are wholly or partly owned by a terrorist organisation or terrorist person or intended to finance a terrorist organisation, a terrorist person or a terrorism crime, even if it without the intention to conceal or disguise their illicit origin.

Providing, collecting, preparing or obtaining Proceeds or facilitating their obtainment by others with intent to use them, or while knowing that such proceeds will be used in whole or in part for the commitment of a terrorist offense, or if he has committed such acts on behalf of a terrorist organisation or a terrorist person while aware of their true background or purpose.

Is guilty of financing illegal organisations crime whoever intentionally commits any of the following:

Proceeds owned by an illegal organisation

Any of the acts specified in Clause (1) of Article (2) of this Decree-Law, if he is aware that the proceeds are wholly or partly owned by an illegal organisation or by any person belonging to an illegal organisation or intended to finance such illegal organisation or any person belonging to it, even if without the intention to conceal or disguise their illicit origin.

Providing, collecting, preparing, obtaining Proceeds or facilitating their obtainment by others with intent to use such proceeds, or while knowing that such proceeds will be used in whole or in part for the benefit of an Illegal organisation or of any of its members, with knowledge of its true identity or purpose.

The legal person shall be criminally responsible for the crime if it is committed in their name or for its account intentionally, without prejudice to the personal criminal responsibility of the perpetrator and the administrative penalties as prescribed by law.