More details have emerged regarding a new law issued by Dubai ruler Sheikh Mohammad Bin Rashid Al Maktoum in a bid to deter fraudsters in the emirate.
Law Number 37 of 2009 on recovering public and private money obtained illegally states that anyone found guilty will be sentenced to five years in jail if the amount is between AED500,000-AED1 million.
The sentence will increase to 10 years for cases where the amount of money involved is between AED1-5 million while a 20-year jail term will be handed down if the amount exceeds AED10 million, UAE daily Gulf News reported on Thursday.
Article 4 of the law stipulates that anyone convicted of financial crimes “shall be jailed apart from detainees or those convicted in penal cases”.
The prison’s management shall provide those convicted in line with this law with appropriate means of communication with the outside world to arrange payment of their debts or settlement with debtors, the paper added.
Under Article 5, the debtor will be released before the end of his jail term if payment of all due funds are made or if an “amicable settlement” can be reached with creditors.
Article 6 of the law stipulates that if the debtor is a corporate body, the jail sentence will be issued against the person who decided not to pay the debt.
The law also says that the debtor will not be sentenced to jail if he/she is below 18 years or over 70 years of age.
The exemption will also apply if the debtor submits a bank guarantee or has a capable guarantor accepted by the execution judge to pay the debts according to an agreed schedule. Jail will also be avoided if the debtor’s properties can be seized and are sufficient to cover his debts.
The court’s jail sentence may be appealed before the court of appeals, provided the appeal does not lead to suspending the implementation of the ruling.
Article 9 stipulates that serving the jail sentence does not excuse the debtor from paying back debts.
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