The UAE has announced a fine of up to AED1m and a five-year jail term for collecting money without a licence to do so.
UAE Public Prosecution took to social media to highlight the penalty for unlicensed collection of money.
According to Article No. 41 of the Federal Decree Law No. 34 of 2021 on Combatting Rumours and Cybercrimes, anybody who invites or promotes a competition or a cryptocurrency or whoever creates or manages a fake company or portfolio in order to receive or collect money from the public for the purpose of the investment, management, utilization, or development thereof, without being licensed by the concerned authorities to do so, shall face sanctions.
UAE Public Prosecution
According to the United Arab Emirates Public Prosecution, punishments can include:
- Imprisonment for a duration of not more than five
- A fine of between AED250,000 and AED1m
Guilty parties will also be told by courts to return acquired funds.
These posts are part of the Public Prosecution’s continuous efforts to promote legal culture among members of the community and increase their awareness about the latest legislations in the country.