Embezzlement and the Laws in Sharjah

Sharjah clearly define this act as a crime. Embezzlement is a breach of trust. The law applies to all Emirates under the UAE Federal Decree-Law No. 31 of 2021. It says that anyone who misuses authority or their position for personal benefit and gain is a criminal. It is for both private employees and public officials who can be held accountable. Best lawyers in Sharjah at Ask The Law Sharjah, provides valuable information and legal knowledge. The UAE Financial Intelligence Unit claimed that over 49,000 reports of suspicious financial transactions were recorded between 2019 and 2021. Research also shows that companies in the UAE lose about AED 4.19 for every dirham lost to fraud. These numbers show why embezzlement and the laws in Sharjah are strict. The law title embezzlement as a crime to protect businesses from fraudulent activities and maintain public trust. Professional lawyers in Sharjah serve and provide the latest legal knowledge to individuals and businesses in UAE.

It occurs when an individual is entrusted with funds, money, or assets, while he unlawfully benefits from the entrusted property. The individual can be an employee, worker, business partner, manager, or any other relevant person. To better understand this, suppose you and your friend own a mutual business, and you entrust him with money or some property for business usage, but he uses it for his personal benefits rather than for business. This is what embezzlement means. It is different from theft. Professional lawyers can also be consulted for the better knowledge.

In Embezzlement, a person legally possesses the asset or money at first, but takes advantage of their position and takes personal benefits from it. Embezzlement refers to the misuse of assets, funds, or money entrusted to someone. It is categorized as white-collar crime. It is treated as a serious criminal offense in the UAE.

There are different types of embezzlement cases. We will be sharing few of them here, and every situation is different from the other. Some of the embezzlement types are as follows:

• Corporate or Commercial Embezzlement
• Partnership Disputes among the business partners
• Banking Frauds and Embezzlements
• Finance Fraud
• Misappropriation of assets or funds by employees
• Real estate fraud, Forgery of Documents, Misrepresentations
• Misappropriation of government-related funds or misuse of public property
• Combatting Federal Laws

It is mainly administered by harsh laws and regulations. The stern laws and legal provisions are designed to safeguard the rights.  The main objective of strict for the act is to ensure fair business dealings.

It not only provides cover to the financial sector but also protects the property rights of individuals and companies. Sharjah is a promising city that adheres to the UAE federal Penal Code to handle embezzlement-related issues.

The crime directly violates the trust that sabotages the individuals’ and businesses’ interests and gains. The UAE has an extensive legal system that clearly defines what embezzlement is and what penalties are given to those found guilty.

It is mainly addressed under the UAE Penal Code, along with other relevant commercial regulations. The laws are evenly applicable to all Emirates in the UAE, including Sharjah. Further, the articles in the Penal Code guide about the criminal liability breach of trust and misappropriation of funds. Criminal prosecution also takes place as guided by the law. There are additional civil laws that permit the victims to seek compensation. The law is applicable to various scenarios involving cash, funds, property, assets, digital assets, or company resources.

The punitive measures of embezzlement depend upon the nature of the crime, the severity of the case, the amount of misappropriation, and the circumstances involved. Some of the common punishments resulting from embezzlement are as follows:

• Imprisonment,
• Handsome fines,
• Restitution
• Jail sentencing or Imprisonments

The offenders of embezzlement may face imprisonment and jail sentences that can range from 6 months to many years in jail. The time duration will depend on the severity and crime scale. It may also lead to heavy monetary fines. The fine can go up to hundreds or thousands of dirhams. It all depends upon the severity and amount of embezzlement involved in the case.

Restitution refers to the court order to return the stolen assets, funds, money, or property. Moreover, the compensation for losses may be ordered by the courts. The cases involving public funds or government property, harsher sentencing and penalties will be imposed. It may result in imprisonment that ranges from 10 years or more of jail.

Some circumstances lead to much stricter penalties. Some of the factors that result in stern sentences are the following:

• Misuse or abuse of position or trust by managers, directors, shareholders, or employees. It means when someone from a key position takes the wrong advantage of his positions or powers.
• Misappropriation of public funds or property.
• Misuse of charity or philanthropy funds, public or private property, or any type of asset.
• Massive financial losses affecting liquidity and cash flows.
• Money losses that directly impact companies, shareholders, and investors.
• Repeat offenses or organized criminal activity.
• Fraudulent documentation or forgery. Its very serious type of embezzlement.

It may lead to criminal or civil liability. It all depends upon the factors affecting the case. The victims of embezzlement in Sharjah may choose to pursue civil claims for the damages. They may request compensation for the losses, damages, or harm that occurred. The UAE courts may choose to order the offender to repay the stolen funds, assets, or property. There may be orders to cover the additional financial losses or damages caused by a certain crime. They may be ordered to bear the legal costs associated with the recovery of funds. Civil cases run parallel to the criminal cases, in some circumstances. The trials keep taking place that ensure victims are compensated and the state prosecutes the offenders for their illicit actions.

Usually, these cases typically start when a victim or company files a complaint. The complaint is launched with the concerned authorities of Sharjah, such as the police department and the Public Prosecution. The process may involve the following:

1. An investigation is conducted by the relevant authorities in Sharjah. They will be responsible for gathering evidence regarding bank statements, track records, contracts, witnesses, testimonial statements, and much more.
2. Forensic accounting will involve specialists. These experts will be analyzing the financial records to track the misuse of funds.
3. Charges are established once sufficient evidence is found in the case. The public prosecution will file the charges as per the Penal Code. A
4. Court Trial will take place once the case progresses to the criminal court. In the courts, the accused will present the defence to establish the crime.

Besides, the police can request asset freezes, seizure of assets, confiscation of property or assets, or imposition of travel bans. It is done to prevent suspects from fleeing the country or hiding funds.

Prevention is far superior to pursuing legal action. Therefore, Sharjah encourages its businesses and companies to reduce the risk of embezzlement.  They suggest ways to create awareness and prevent criminal acts within the companies. They suggest that companies have strong internal control systems. The operations and activities of businesses must be aligned with the UAE laws.

It emphasizes organizing the financial checks and internal audits after regular intervals. This helps in implementing stronger internal controls that help in managing cash flows. The training of employees assists in avoiding such actions. They must be given a proper session on ethical conduct and fraud awareness.

The training session, meetings, and programs will aid the companies’ workers to differentiate between right and wrong actions. Additionally, it focuses on businesses that should work on their legal compliance. For this, clear policies on reporting must be established to address the suspected fraud.

The cases related to embezzlement are often complex. The UAE laws and legal provisions appear to be confusing for a layman. It is also suggested that victims and accused parties consult a professional lawyer in Sharjah. They have the potential to carefully guide the clients through the procedure. Well-known professional law firms in Sharjah have a team of legal experts who have an understanding of the laws, statutes, and legal provisions. They assist in collecting evidence and gathering forensic evidence that helps in the case.

Besides, attorneys in Sharjah coordinate with the authorities, like the Police Department and Public Prosecution. Quick actions are recommended because delay can create difficulties. They act quickly to file a complaint with the concerned authorities and act according to the law and requirements.  The knowledgeable lawyers in Sharjah serve the best interests of the client throughout the investigation and prosecution process.

To conclude, embezzlement is one of the most serious financial crimes under UAE law, and embezzlement and the laws in Sharjah highlight the country’s firm stance on justice and integrity. These laws aim to protect individuals, businesses, and public institutions from misuse of trust and power. Sharjah follows strict legal measures to ensure transparency in financial dealings and safeguard public trust. However, embezzlement cases are often complex and require legal help because of the detailed investigations, financial audits, and legal proceedings involved in them.

• Therefore, anyone accused or victimised by embezzlement should consult professional lawyers in Sharjah so that justice is pursued with fairness.