The United Arab Emirate (UAE), which is centrally located and close to important global markets, offers excellent business benefits, including tax-free income, and is a desirable site for international trade. Immigration, especially from expatriate workers, is attracted to the nation by its favourable climate and growing economy. The UAE is essentially a nation of opportunities.
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What Does Trust Breach Mean?
According to Federal Law No. 3 of 1987 and its revisions, fraud and breach of trust crimes are criminal offences in the United Arab Emirates (the Penal Code). Article 404 of the UAE Penal Code defines crimes of embezzlement of movable property, including money, as a breach of trust.
A circumstance when a person in a position of trust and responsibility abuses that position to steal from their principal’s property is typically considered a criminal breach of trust. The victim (the principal) in a business environment is typically a business owner, an employer, or a business partner, while the offender is typically an employee, a business partner, or a supplier/vendor.
File a Criminal Complaint against Trust Breach:
Federal rules in the UAE permit anybody who has been the victim of embezzlement by their employees or business partners to file a criminal complaint against the offenders, including employers and joint venture partners. The law additionally enables people to initiate civil court proceedings in order to seek restitution from the responsible party.
Conditions For A Criminal Trust Breach Case
Even though it is legal to sue someone for a breach of trust, there are certain requirements that must be met before a breach of trust lawsuit can proceed. These needs or conditions include:
- Only if the embezzlement includes transportable property, such as cash, papers, or financial assets like shares or bonds, can there be a breach of trust.
- When the accused has no legitimate claim to the assets they are accused of stealing or misappropriating, there has been a breach of trust. In essence, the perpetrator lacked the legal
right to behave in that manner.
- A breach of trust necessitates the victim to suffer damages.
- If the accused has possession of the property through a lease, trust, mortgage, or proxy, there has been a breach of trust.
- A shareholder who prevents other shareholders from exercising their legal rights on their shares and takes those shares for their own profit may be charged with breach of trust in a shareholding relationship.
Punishment For Trust Breach In UAE
The UAE federal legislation criminalises breach of trust under Article 404 of the Penal Code in order to dissuade people from committing these offences. As a result, breach of trust is a criminal violation, and those found guilty face the following penalties:
- an imprisonment sentence, or
- a fine
The length of the sentence or the size of the fine, however, may be decided by the court in accordance with the Penal Code’s rules. Article 71 of the Federal Penal Code No. 3 of 1987 specifies a maximum fine of AED 30,000 and a maximum jail sentence of not more than three years, while the courts are free to impose any punishment depending on the seriousness of the offence.
UAE’s Breach of Trust Law: Technological Developments:
The UAE’s approach to some trust breach situations has altered as a result of new technologies, much like other fields. For instance, the UAE Cyber Crime Law allows the court to bring charges against offenders who committed crimes using computers or other electronic devices (Federal Law No. 5 of 2012).
The Cyber Crime Law’s provisions for prosecuting trust breach offences are more severe than those found exclusively in the Penal Code. Among the offences covered by the cybercrime law are those involving:
- using technological or electronic techniques to make a false document
- usage of a falsified electronic document on purpose
- using technological or electronic tools to fraudulently acquire property
- Unlawful use of technology to get access to bank accounts
- Unauthorized use of a technological or electronic system, particularly at work
Unauthorized access to a person’s or an organization’s accounting or bank credentials in order to move money unlawfully or steal from them is a frequent scenario of a breach of trust using technology in the UAE.
Employ A Skilled And Reliable Legal Consultant In Dubai:
It is important to consult a criminal lawyer in the UAE if you believe there has been a breach of trust. Sara Advocates and Legal Consultants is one of the top criminal law firms in the UAE that specialises in criminal breach of trust law.
We’ll make sure the court hears your case and that your rights are upheld. Your needs will be fully met by our breach of trust attorney in Dubai, United Arab Emirates. We recognise how significant your case is to you, and we will do everything in our power to protect your rights and interests. Visit our office or call us now to get legal advice.
