Federal Law No. (4) of 2002 On the Incrimination of Money Laundering

Preamble

We, Zayed Bin Sultan Al Nahyan, President of the United Arab Emirates State,

Pursuant to the perusal of the Constitution, and

Federal Law No. (1) of 1972 Regarding the Jurisdiction of the Ministries and the Powers of Ministers  and the amending laws thereof, and

Federal Law No. (10) of 1980 Regarding the Central Bank, the Monetary System and the Regulation of the Banking Profession and the amending laws thereof, and

Penal Code issued by the Federal Law No. (3) of 1987, and

Law of Criminal Procedures issued by the Federal Law No. (35) of 1992, and

Federal Law No. (14) of 1995 On the Control of Narcotics and Psychotropic Substances, and

Federal Decree No. (55) of 1990 On the Consent to Adhere to the United Nations Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances for the year 1988, and

Acting upon the proposal of the Minister of Finance and Industry, the approval of the Federal National Council and the ratification of the Federal Supreme Council,

Have promulgated the following Law:

Article (1) - Definitions

In the implementation of the provisions hereof, the following terms and phrases shall have the meanings assigned for each of them unless the context requires otherwise:

State: The United Arab Emirates State.

Minister: Minister of Finance and Industry.

Central Bank: Central Bank of United Arab Emirates.

Governor: Governor of the Central Bank.

Committee: National Anti- Money Laundering committee.

Funds: Assets whether tangible or intangible, movable or immovable, documents or deeds proving the possession of assets or any right thereof.

Money Laundering: Every act involving money transfer, transport and deposit or concealment of the nature of the returned funds from one of the crimes set forth in clause 2, Article (2) herein.

Returns: Funds resulting directly or indirectly from the perpetration of any crime set forth in clause 2, Article (2) herein.

Freezing or seizure: the provisional prohibition on money transfer, transport, disposal or mobilization by virtue of a decision issued by the competent authority.

Confiscation: the permanent expropriation of the funds by virtue of a judgment issued by the competent court.

Means: Any thing used or intended to be used in any way whatsoever in the perpetration of a crime provided for in clause 2, Article (2) herein.

Financial facilities: Any bank, financing institution, exchange office, financial broker, monetary agent, or any other facility licensed by the Central Bank, whether publicly or privately owned.

Other financial, commercial, and economic facilities: Licensed and controlled facilities by parties other than the Central Bank, such as insurance, the financial markets and others.

Chapter One. Definition of Money Laundering

Article (2)

1. Whoever undertakes intentionally or assists in any of the following acts with regards to the returns of any of the crimes set forth in clause 2 of the present Article shall be deemed a perpetrator of a money laundering crime:

a) The transfer, transport or deposit of the returns in view of disguising or concealing the illegal sources thereof.

b) The concealment or disguise of the nature, the source, the location, the method of disposal, the movement, the rights attached thereto or the ownership of the returns.

c) The acquisition, the possession or the use of the said returns.

2. For the purposes of the present law, the funds shall be the returns of the following crimes:

a) Narcotics and psychotropic substances.

b) Kidnapping, piracy and terrorism.

c) Crimes breaching the provisions of the environmental law.

d) Illegal trafficking of firearms and ammunitions.

e) Crimes of bribery, embezzlement and damage to public funds.

f) Crimes of fraud and breach of trust and related acts.

g) Any other related crimes set forth in the international conventions to which the State adheres.

Article (3)

The financial facilities and other financial, commercial and economic facilities operating in the State shall be criminally liable for the crime of money laundering should it be committed intentionally in the name or on behalf thereof and such without prejudice to the administrative sanctions set forth in the law.

Chapter Two. The Commitments of the Governmental Authorities and the Jurisdictions Thereof

Article (4)

The Central Bank may order, in accordance with the present law, to freeze the suspected funds of the financial facilities for a duration not exceeding seven days.

The Public Prosecution may order to retain the suspected funds, returns or means in accordance with the procedures adopted thereby.

The competent court may order a precautionary seizure for an undefined duration of any funds, reserves or means should they result from or be related to a money laundering crime.

Article (5)

1. Without prejudice to the provisions set forth in Article (4) herein, the criminal proceedings against the perpetrator of a crime set forth herein shall not be filed except by the Public Prosecutor.

2. The decisions of retention and precautionary seizure of the funds of the financial facilities shall not be executed unless via the Central Bank.

Article (6)

The Central Bank shall determine the maximum sums allowed to be introduced in cash to the State without being declared. All the exceeding sums shall be subject to the declaration regulation set by the Central bank.

Article (7)

A “Financial Information Unit” shall be established in the Central Bank for the combat of money laundering and suspected cases, to which reports regarding suspected operations shall be dispatched by all financial facilities and other related financial, commercial, and economic facilities. The committee shall determine the form of the report of suspected transactions and the method of the dispatch of such report thereto. The committee shall also put the available information at the disposal of the law enforcement parties in order to facilitate the investigations carried out thereby. Said unit may also exchange with similar units in other countries information contained in the reports of suspected cases, and such pursuant to the international conventions to which the State is deemed a party, or on condition of reciprocity.

Article (8)

1. The unit set forth in Article (7) herein shall undertake, after the study of the cases notified thereto, the notification of the Public Prosecution in view of taking the necessary measures.

2. Should the notification regarding cases of money laundering be reported directly to the Public Prosecution, the Public Prosecution shall take the necessary measures after the consultation of the said unit with regards to the content of the notification.

Article (9)

The Minister shall form a committee presided by the Governor. This committee shall undertake the combat of money laundering in the State and shall be called “The National Anti- Money Laundering Committee”. It shall be constituted of one or more representatives of the following parties in accordance with the nomination thereof:

- The Central Bank.

- The Ministry of Interior.

- The Ministry of Justice, Islamic Affairs and Endowments.

- The Ministry of Finance and Industry.

- The Ministry of Economy and Commerce.

- The parties issuing commercial and industrial licenses.

- The Customs Council in the State.

Article (10)

The Committee shall have jurisdiction to carry out the following:

- Propose regulations and measures for the combat of money laundering in the State.

- Facilitate information exchange and coordinate between the represented parties therein.

- Represent the State in international Forums pertaining to the combat of money laundering.

- Propose the organizational regulation related to the work of the Committee.

- Any other matters transferred thereto by the competent parties in the State.

The remuneration of the members of the Committee shall be determined by a decision from the Board of Directors of the Central Bank. The regulations shall also determine the timeframes and work process of the Committee.

Article (11)

The parties licensing and controlling the financial facilities and other financial, commercial, and economic facilities shall set the appropriate mechanisms in order to ensure the abidance of the aforementioned facilities by the regulations related to the combat of money laundering in the State including the submission of suspected cases upon their occurrence to the Unit referred to in Article (7) hereof.

Article (12)

All parties must abide by the confidentiality of the information received thereby regarding the crimes set forth herein. They must not divulge such information except to the extent deemed necessary for the use thereof in investigations, lawsuits or actions related to the breach of the provisions hereof.

Chapter Three. Sanctions

Article (13)

Whoever perpetrates an act set forth in clause 1, Article (2) hereof shall be sentenced to imprisonment for a period not exceeding seven years, or to a fine amounting to (300,000) Three Hundred Thousand Dirhams at most and (30,000) Thirty Thousand Dirhams at least, or to both sanctions with the confiscation of the returns or properties whose value is equal to such returns, or whatever has the same value as said returns, should they be transferred or converted, partially or totally, to other properties or mixed with other properties acquired from legal sources.

Article (14)

Whoever breaches the provision of Article (3) hereof shall be sentenced to a fine amounting to Three Hundred Thousand Dirhams at least and One Million Dirhams at most, and to the confiscation of the returns or properties having the same value or equivalent to the returns should they be transferred or converted, partially or totally, to other properties or mixed with other properties acquired from legal sources.

Article (15)

The chairmen and members of boards of directors as well as the managers and employees of the financial facilities and other financial, commercial, and economic facilities who knew of and abstained from notifying the unit set forth in Article (7) hereof of any act taking place in the facilities thereof connected to a crime of money laundering shall be sentenced to imprisonment or to a fine amounting to One Hundred Thousand Dirhams at most and Ten Thousand Dirhams at least, or to both sanctions.

Article (16)

Whoever notifies any person that the transactions thereof are being reviewed because of performing suspected operations, or that security authorities or other competent parties are investigating his performance of suspected operations, shall be sentenced to imprisonment for a period not exceeding a year or to a fine amounting to Fifty Thousand Dirhams at most and Five Thousand Dirhams at least, or to both sanctions.

Article (17)

Whoever notifies with ill faith the pertinent parties of the perpetration of a money laundering crime in view of causing harm to another person shall be sentenced to the maximum sanction for the crime of false notification.

Article (18)

Whoever breaches the provision of Article (6) hereof shall be sentenced to a fine amounting to Ten Thousand Dirhams at most and Two Thousand Dirhams at least.

The sums, subject of the breach, shall be retained until released by a decision from the Public Prosecution, unless their connection to another crime is established.

Article (19)

Whoever breaches any other provision hereof shall be sentenced to imprisonment or to a fine amounting to One Hundred Thousand Dirhams at most and Ten Thousand Dirhams at least.

Article (20)

Financial facilities and other financial, commercial, and economic facilities, the members of their boards of directors, their employees and their legally authorized representatives shall be exempted from the criminal, civil or administrative liability that may result from submitting required information or from breaching any imposed restriction of confidentiality of the information by a legal, contractual, organizational or administrative provision, unless it is established that such notification is made in ill faith in view of causing harm to the concerned party.

Chapter Four. International Cooperation

Article (21)

The competent judicial authority, in accordance with a request by the judicial authority in another country connected to the State by an approved convention, or on condition of reciprocity should the criminal act be sanctioned in the State, shall order the tracking, freezing, imposing precautionary seizure on funds, returns or means resulting from a crime of money laundering or used therein.

Article (22)

Any provisions or judicial writ setting forth the confiscation of funds, returns, or means related to crimes of money laundering issued by a court or a competent judicial authority of another country connected to the State by an approved convention may be recognized.

Chapter Five. General Provisions

Article (23)

The Cabinet shall issue the executive regulations of the provisions hereof, in accordance with the suggestion of the Committee and the proposal of the Minister.

Article (24)

Any provision conflicting with or contradicting the provisions hereof shall be abrogated.

Article (25)

This Law shall be published in the Official Gazette and shall come into force as of the date of its promulgation.

Promulgated by Us in Abu Dhabi

On 22 January 2002
Corresponding to 8 Dhu Al-Qi’dah 1422 H.

Zayed Bin Sultan Al Nahyan,
President of the United Arab Emirates State