What is the offence of counterfeiting currency?
Article 239 of the Federal Decree-Law No. 31 of 2021 (Crimes and Penalties Law) imposes life or temporary imprisonment and a fine of not less than AED 200,000 on anyone who counterfeits, falsifies or forges, personally or through an intermediary, a currency note or coin legally circulated in the UAE or in another country, or a governmental security.
A coin is counterfeit if metal has been reduced or if it is coated to look like a more valuable coin.
What about bringing in, passing or possessing counterfeit money?
Article 240 imposes the same penalty on whoever brings a counterfeit currency or security into or out of the State, puts it into circulation or deals with it, or possesses it for that purpose, while fully aware of the counterfeiting.
If the crimes lead to devaluation of the national currency or shake financial trust in markets, the penalty is life imprisonment (Article 241).
Is there protection if I accepted it in good faith?
Article 243 provides imprisonment of up to one year and a fine of up to AED 50,000 for someone who accepts counterfeit currency in good faith and then deals with it after learning it is counterfeit.
The key is knowledge. Taking counterfeit money without knowing is different from passing it on after you know.
What about equipment and early reporting?
Manufacturing machines or tools for counterfeiting carries temporary imprisonment, and possessing them knowing their purpose carries incarceration (Article 244). Article 245 exempts a perpetrator who informs the authorities before the money is used and before the crime is revealed.
If the information comes after the crime is discovered, the court may exempt the person if it helped arrest the others.
What should I do first?
Do not pass the note or coin on
Keep it and note where it came from.
Report promptly through a lawyer
Early reporting matters under Article 245.
Write down the circumstances
Who gave it, when, how much.
Do not discuss with the source
Let your lawyer handle contact.
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Frequently asked questions
What is the penalty for counterfeiting?
Life or temporary imprisonment and a fine of not less than AED 200,000 (Article 239).
What if I received a fake note by mistake?
Article 243 punishes only dealing with it after you learn it is counterfeit, with up to one year and a fine of up to AED 50,000.
Does the law cover foreign currency?
Yes. Article 239 covers currency legally circulated in the UAE or in another country.
Is reporting helpful?
Yes. Article 245 exempts a perpetrator who informs before the crime is revealed.
Related guides
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Read the guideDocument Forgery
How the law defines forgery of official and non-official documents, including contracts and commercial papers, and the penalty for using a forged document.
Read the guideSources
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.