Dh1-Million Fine, 1-Year Jail For Money Laundering Linked To Fake Branded Goods

(MENAFN- Khaleej Times) The transactions were structured to mask the origin and nature of the funds, an act that falls under UAE law on combating money laundering, terrorism financing, and financing illegal organisations

By: Afkar Ali Ahmed

A court in the UAE has convicted two Asian men of money laundering after finding them guilty of processing Dh1 million from the sale of counterfeit branded products.

The Federal Court of First Instance sentenced them to one year in prison and imposed fines of Dh1 million, in a ruling that underscores the country’s zero-tolerance approach to financial crime.

Case details Recommended For You

The prosecution told the court that the two men had deposited, withdrawn, and transferred Dh1 million through bank accounts in a deliberate effort to conceal the source of the money. Authorities said the funds were generated from selling fake branded goods, and that the defendants were fully aware the money originated from criminal activity.

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The transactions were structured to mask the origin and nature of the funds, an act that falls under UAE law on combating money laundering, terrorism financing, and financing illegal organisations.

Court ruling

After reviewing the evidence, the court concluded that the money laundering charges were proven beyond reasonable doubt. In addition to prison terms and fines, the court ordered:

Confiscation of the Dh1 million seized from their bank accounts

Deportation of both men after serving their sentences

Payment of all court fees

The judge emphasised that even relatively small sums, when linked to illegal trade such as counterfeiting, are treated seriously under UAE law, particularly when financial transactions are used to hide the proceeds.

Legal significance

Under UAE law, the prosecution must show that the accused knew the money was illicit and intentionally engaged in transactions to disguise it. The case highlights the authorities’ commitment to cracking down on both money laundering and counterfeit trading, reinforcing strict financial and commercial regulations in the country.

The ruling serves as a warning to businesses and individuals alike that attempts to“clean” illicit funds, even from small-scale counterfeit sales - can lead to prison, hefty fines, and deportation.

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