Breach of Trust Crimes in Dubai

In the United Arab Emirates, breach of trust is a serious offense that can have far-reaching consequences for individuals and businesses alike. As one of the most experienced law firms in the UAE, AK Advocates has been at the forefront of handling these complex cases for over two decades. 

Our team of seasoned criminal defense attorneys and legal experts is well-versed in the intricacies of UAE law, particularly when it comes to breach of trust allegations.

What is a Breach of Trust?

Fraud and breach of trust are criminal offenses in the UAE under Federal Law No. 3 of 1987 and its amendments (the Penal Code). According to article 404 of the UAE Penal Code, breach of trust law involves offenses of embezzlement of movable property, including money.

Generally, a criminal breach of trust involves a situation where a person put in a position of trust and responsibility takes advantage of their position to embezzle their principal’s property. In a business setting, the perpetrator is usually an employee, a business partner, or a supplier/vendor. At the same time, the victim (the principal) is usually a business owner, an employer, or a business partner.

UAE’s federal laws allow anyone, including employers and joint-venture partners who are victims of embezzlement by their employees or business partners, to sue the offenders in a criminal case. Additionally, the law allows them to recover compensation from the guilty party by instituting proceedings in a civil court.

Who Can Be Affected by Breach of Trust?

Breach of trust can occur in various contexts, affecting a wide range of individuals and entities. Here are some real-world examples:

1. A financial advisor misappropriating client funds for personal gain
2. An employee embezzling company resources
3. A business partner diverting profits without the knowledge of other stakeholders
4. A trustee mismanaging assets entrusted to their care
5. A real estate agent mishandling client deposits

Recent Data on Breach of Trust in the UAE

While specific statistics on breach of trust cases in the UAE are limited, recent data sheds light on the broader landscape of financial crimes:

1. According to the UAE Central Bank’s 2022 report, there was a 35% increase in suspicious transaction reports related to financial crimes, including breach of trust cases.
2. The Dubai Financial Services Authority (DFSA) reported a 12% rise in investigations into financial misconduct in 2023, with breach of trust allegations accounting for a significant portion of these cases.

Official Stance on Breach of Trust

H.E. Abdullah Sultan Bin Awad Al Nuaimi, Minister of Justice, emphasized the UAE’s commitment to combating financial crimes in 2024: “The UAE has zero tolerance for breach of trust and other financial offenses. We are continuously strengthening our legal framework to ensure that such cases are dealt with swiftly and justly.”

Requirements for a Breach of Trust in a Criminal Case

Even though the law allows people to sue others for breach of trust offenses, a breach of trust case has to meet some requirements or conditions, elements of the crime of breach of trust: including:

1. A breach of trust can only occur if the embezzlement involves a moveable property, including money, documents, and financial instruments like shares or bonds.
2. A breach of trust occurs when the accused has no legal right over the property they are accused of embezzling or misappropriating. Essentially, the offender had no legal authority to act the way they did.
3. Unlike theft and fraud, a breach of trust requires the victim to incur damages.
4. For a breach of trust to occur, the accused must have possession of the property in one of the following ways: as a lease, trust, mortgage, or proxy.
5. In a shareholding relationship, a shareholder who prohibits other shareholders from exercising their legal rights on their shares and takes those shares for their benefit may be prosecuted with breach of trust.

Key Sections and Articles on Breach of Trust from UAE Criminal Law

The UAE Criminal Law contains several articles addressing breach of trust. Here are some key sections:

1. Article 404: Defines the offense of breach of trust and outlines potential penalties
2. Article 405: Addresses aggravating circumstances in breach of trust cases
3. Article 406: Covers breach of trust in professional contexts
4. Article 407: Deals with breach of trust involving public funds
5. Article 408: Addresses breach of trust in banking and financial institutions
6. Article 409: Covers breach of trust in the context of wills and inheritances
7. Article 410: Outlines additional penalties for breach of trust offenses

Breach of Trust Law UAE: Technological Changes

Similar to other areas, new technology has changed how the UAE prosecutes some breach of trust cases. For instance, in situations where the offender used a computer or an electronic device to commit the crime, the court can prosecute them under UAE Cyber Crime Law (Federal Law No. 5 of 2012).

Breach of trust offenses under the Cyber Crime Law carries a harsher penalty than those prosecuted only under the Penal Code provisions. Crimes subject to the Cyber Crime Law include those involving:

• Forging a document using electronic/technological means, including common types of forgery such as digital forgery (manipulating digital files or records). 
• Intentional use of a forged electronic document
• Using electronic/technological means to obtain property illegally
• Unlawful access to bank accounts through electronic/technological means
• Unauthorized access of an electronic/ technological system, especially at work

A Common scenario of breach of trust through technology in the UAE includes unauthorized access of a person’s or an organization’s accounting or bank details to transfer money fraudulently or steal from them.

Penalties & Punishments for Breach of Trust Offences across Dubai and Abu Dhabi

The UAE imposes severe penalties for those found guilty of breach of trust:

1. Imprisonment: Offenders may face a jail term ranging from six months to three years.
2. Fines: Monetary penalties can be substantial, often reaching up to AED 30,000.
3. Deportation: Non-UAE nationals convicted of breach of trust may face deportation after serving their sentence.
4. Restitution: Courts may order the offender to repay the misappropriated funds or return the property in question.

In cases involving public funds or property belonging to government entities, the penalties are even more severe, with imprisonment terms potentially extending to five years and fines reaching AED 500,000 in both Abu Dhabi and Dubai.

Defense Strategies on Breach of Trust Crimes in the Emirates of Abu Dhabi and Dubai

When facing breach of trust charges in the UAE, experienced criminal defense lawyers may employ various strategies:

1. Lack of Intent: Demonstrating that the accused had no intention to misappropriate funds or property.
2. Absence of Fiduciary Relationship: Arguing that no legal obligation existed between the parties involved.
3. Consent: Proving that the alleged victim had given permission for the use of funds or property.
4. Mistaken Identity: Showing that the accused was not the person who committed the alleged breach.
5. Insufficient Evidence: Challenging the prosecution’s evidence as inadequate to prove guilt beyond reasonable doubt.

Reach us at +971506531334 or +971558018669 to discuss how we can help you in your criminal case.

Breach of Trust in Business in UAE can occur in a multitude of ways, including:

Misappropriation of Funds: This occurs when an individual uses the business’s money for their own personal use without the necessary approvals or legal justifications.

Misuse of Confidential Information: This can occur when a person shares proprietary or sensitive business information with unauthorized individuals or competitors.

Non-compliance with Fiduciary Duties: This happens when an individual fails to act in the best interest of the business or stakeholders, often for personal gain or benefit.

Fraud: A person can commit fraud by providing false information or intentionally deceiving the company, often to benefit themselves financially.

Non-Disclosure of Conflicts of Interest: If an individual is in a situation where their personal interests conflict with the interests of the business, they are expected to disclose this. Failure to do so is a breach of trust.

Improper Delegation of Responsibilities: Entrusting someone with responsibilities and tasks that they’re not capable of managing can also be considered a breach of trust, especially if it results in financial loss or damage to the business.

Failure to Maintain Accurate Records: If someone knowingly allows the business to maintain inaccurate records, it’s a breach of trust as it could lead to legal issues, financial losses, and damaged reputation.

Negligence: This can occur when an individual fails to perform their duties with the care that a reasonable person would use under similar circumstances. This can lead to damage to the business’s operations, finances, or reputation.

Unauthorized Decisions: Making decisions without the necessary approval or authority can also be considered a breach of trust, especially if those decisions lead to negative consequences for the business.

Taking Business Opportunities for Personal Gain: This involves taking advantage of business opportunities for personal benefit rather than passing those opportunities along to the business.

These are just a few examples, but any actions that violate the trust placed in an individual by a business could be considered a breach of trust.

Dubai and Abu Dhabi Breach of Trust Lawyer Services

With over 20 years of experience in UAE criminal law, our skilled advocates have successfully handled numerous breach of trust cases. We pride ourselves on our:

• In-depth knowledge of UAE legal statutes
• Strategic approach to case building
• Strong relationships with local authorities
• Proven track record of favorable outcomes

Best Criminal Lawyer Near Me for Breach of Trust Cases

Our criminal lawyers in Dubai have provided legal advice and legal services to all Dubai residents including in Emirates Hills, Deira, Dubai Hills, Dubai Marina, Bur Dubai, Jumeirah Lakes Towers (JLT), Sheikh Zayed Road, Mirdif, Business Bay, Dubai Creek Harbour, Al Barsha, Jumeirah, Dubai Silicon Oasis, City Walk, Jumeirah Beach Residence (JBR), Palm Jumeirah, and Downtown Dubai. This widespread presence allows us to serve clients across the UAE effectively.

Why Choose AK Advocates for Your Breach of Trust Offences?

When facing criminal charges in Dubai or Abu Dhabi, time is of the essence. At AK Advocates, we understand the critical nature of prompt legal intervention in breach of trust cases. Our team of seasoned criminal defense lawyers, deeply versed in UAE law, stands ready to champion your cause.

Don’t let delay jeopardize your future. Every moment counts in building a robust defense and preserving your legal options. Our proven track record in expediting cases and securing favorable outcomes speaks to our commitment and expertise across the regions of Dubai and Abu Dhabi.

Take the first step towards protecting your rights and reputation. Contact AK Advocates today at +971506531334 or +971558018669 to schedule an immediate consultation. Let our experience be your shield in these challenging times.