Article 65 of the Federal Penal Code holds juridical persons, except governmental agencies, accountable for criminal acts committed on their behalf or in their name by their representatives, directors, or agents. Under Dubai criminal law, if a corporation is convicted of a crime carrying a non-financial penalty, the court can impose a fine of up to AED 50,000.
However, this fine does not cap the corporation’s total financial liability. Under Article 22 of the CrPL, victims can file claims against the company and any other perpetrators to seek civil compensation for damages resulting from the crime.
Which Crimes Can Be Committed by Companies?
With respect to any offense with criminal liability of the offense, corporate entities can be criminally liable under the assumptions set forth in Article 65 of the Federal Penal Code. With our experience, we have helped clients to both navigate claims and to defend against claims involving:
- Fraud and breach of trust
- Bribery and corruption
- Embezzlement of public funds
- Money laundering
- Forgery
- Dishonored cheques
- Liability of directors and officers for bad management or falsifying corporate records
- Cybercrimes
- Employee deaths to labour law violations and safety breaches
- Criminal charges for stealing property, breach of trust, or revealing confidential information by employees
Our knowledge enables us to navigate such complex legal challenges for our clients, ensuring that they remain compliant with Dubai criminal law and that their rights and interests are well protected in the process.
Additionally, understanding criminal case punishment in UAE is crucial for corporations to assess the potential risks and legal consequences of various offenses.
How Does the Court System Work in the UAE? | Dubai Criminal Law
The UAE’s Criminal Courts are divided into three levels, i.e. Courts of First Instance; Courts of Appeal; and a third tier which differs from one Emirate to the other.
The two emirates Abu Dhabi and Ras Al Khaimah have a dual system comprising local courts (Court of First Instance, Court of Appeal, and Cassation Court) and Federal courts (Court of First Instance, Court of Appeal, and Union Supreme Court). Meanwhile, Ajman, Fujairah, Sharjah, and Umm Al Quwain have exclusive jurisdiction in the federal court system, and Dubai only maintains local courts.
Normally the Public Prosecutor forwards criminal complaints to the Tribunal de Première Instance. But there are caveats. Extradition cases, for instance, go straight to the Court of Appeal.
Likewise, crimes committed outside the UAE but that fall under the jurisdiction of the UAE Criminal Courts, are submitted to the Courts of the Capital. It is worth noting that issues concerning national security go straight to the Union Supreme Court. However, it helps to know how criminal case punishment in UAE works when going through these criminal proceedings.
The parties shall have 15 days to appeal the judgment of the Court of First Instance and the Attorney shall have 30 days. Such appeals must be lodged before the Cassation or Union Supreme Court within thirty days from the day when the Court of Appeal issues its judgment or when the relevant judgment is communicated to the parties. In some instances, a conviction may be reviewed (e.g., when newly discovered evidence exonerating the defendant is obtained).
Conclusion
The overarching legal provision governing this aspect is Article 65 of the Federal Penal Code which establishes corporate liability for offenses committed by legal persons’ representatives or directors or agents in the course of their activities on behalf of the entity, its criminal liability under the law. Companies may receive non-financial penalties of up to AED 50,000 and face further financial liabilities. In addition, victims have the right to sue for civil damages caused by the crime. Corporate offenses can include a range of crimes like fraud, bribery, money laundering, and cybercrimes.
Criminal cases in the UAE are structured according to a system of courts organized into local and federal jurisdictions based on which Emirate the offense occurred in. UAE Criminal Case Punishments & Their Understanding: The businesses should know the criminal case punishments in the UAE as this is important for assessing the legal risks or consequences when going through the appeals and reviews stages. For expert guidance Khairallah Law Firm provides comprehensive support to criminal lawyers in Dubai.
Having said that, Contact Khairallah Advocates & Legal Consultants and benefit from our free 30-min legal consultation.
*Disclaimer: our blogs, law updates and FAQ’s are freely distributed for educational purposes and to showcase recent updates and regulations in the UAE’s framework.
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