What is asset concealment?
Several articles of the Federal Decree-Law No. 51 of 2023 (Financial Restructuring and Bankruptcy Law) cover it. Article 269(2) punishes managers and directors who embezzle or conceal part of the company's assets after a final decision to initiate proceedings. Article 271(4) covers disposing of assets after the cessation of payment if intended to conceal them from creditors.
Article 277(1) punishes a debtor who intentionally conceals any of their assets to obtain the required majority for a settlement proposal, plan or composition.
Can a third party be liable?
Yes. Article 274 punishes whoever steals, embezzles or conceals the debtor's assets, knowing a decision has been issued to initiate bankruptcy proceedings, with imprisonment of up to five years, even if the person is the debtor's spouse, ascendant or descendant, or their spouse's.
The court orders the assets returned to the debtor and may award compensation. Take advice before taking or holding anything from a debtor.
What about a trustee?
Article 273 punishes a trustee who embezzles the debtor's assets during their management with imprisonment and/or a fine of up to AED 1,000,000, with return of the assets and possible compensation.
Article 279 punishes a controller or trustee who intentionally gives incorrect data about the debtor's condition or discloses confidential data.
What is the defence?
That the disposal was in the ordinary course of business, at fair value, before the relevant dates and not intended to hide anything.
Records of valuation, buyer, payment and purpose are decisive. Do not move assets once trouble is expected without advice.
What should I do first?
List assets and every recent transfer
With dates and values.
Keep valuations and payments
They show fair value.
Do not hold assets for a debtor
It can lead to liability.
Call us before any transfer
Dates matter.
Call us on +971 50 653 1334 or message us on WhatsApp. We answer at any hour.
Frequently asked questions
Can a family member be liable for hiding assets?
Yes. Article 274 applies even if the person is the debtor's spouse, ascendant or descendant.
What is the penalty for a third party?
Imprisonment of up to five years (Article 274).
Must assets be returned?
Yes, the court orders them returned to the debtor (Article 274(2)).
Is a sale below market value an offence?
It can be if made significantly below value to delay bankruptcy or hide assets (Article 270 and 271).
Related guides
Bankruptcy Fraud overview
The main points, the process and your first steps.
Read the overviewInsolvency Fraud
The criminal offences that can arise when a debtor or a company's directors act dishonestly around insolvency, and the lesser offence of bankruptcy by default.
Read the guideCreditor Fraud
Offences by creditors and others in an insolvency: false debts, secret agreements, buying votes and taking part without the right to.
Read the guideSources
Source: Federal Decree-Law No. 51 of 2023 (Financial Restructuring and Bankruptcy Law), official English text on the UAE Legislation portal, checked 9 October 2026. The portal lists the law as active, in force from 1 May 2024. The Arabic text prevails over translations. Source: Federal Decree-Law No. 31 of 2021 (Crimes and Penalties Law), official English text on the UAE Legislation portal, checked 9 October 2026. The portal lists the law as active and last updated on 7 September 2026. The Arabic text prevails over translations.
This page is general information, not legal advice.