UAE: Transferring money to strangers could land you 10 years in prison

At first glance, it may seem like a harmless scene: a group of people gathered around an ATM. One of them asks another for help depositing money into a bank account—either their own or an unknown recipient’s—claiming that their ATM card isn’t working or that they forgot their ID. The person agrees and uses their personal ID to make the deposit or transfer. While this might appear to be a simple act of kindness, the law views it quite differently.

In the UAE, depositing or transferring funds into unknown or unverified accounts can lead to serious legal consequences—particularly if the recipient’s account is later linked to organized crimes such as money laundering, terrorist financing, or drug trafficking.

Gulf News has tracked several such incidents and received reports of individuals being prevented from completing bank transfers due to suspicions surrounding the recipient accounts. Investigations revealed that many of these people had made deposits or transfers based on random requests from strangers, unaware of the legal dangers involved.

Legal advice

Speaking to Gulf News, lawyer and legal advisor Abeer Al Dahmani emphasized:

“First, it’s important to clarify that anyone who deposits or transfers money to strangers without prior knowledge or verification exposes themselves to legal liability—even if their intentions are good. Many individuals ask for help at ATMs claiming their cards are not working, but in reality, they may be attempting to carry out suspicious financial transactions. The law does not distinguish much between someone who was deceived and someone who was careless. While good intentions may reduce penalties, they do not absolve responsibility when negligence or willful ignorance is involved.”

Al Dahmani added, “Anyone making a transfer or deposit must verify the source of the funds and ensure they are legitimate. They must also know the identity and nature of the recipient and the purpose of the transaction. Transferring money to strangers—especially at ATMs under the pretense that they lack ID—is extremely risky. The person using their ID to complete such a transaction bears the responsibility, even if they don’t know the recipient. That money could be tied to drug trafficking, terrorist financing, or other serious crimes.”

Penalty for money laundering

Al Dahmani explained: “The law is very clear. Article (2) of the Federal Law on Combating Money Laundering, Terrorism Financing, and Illegal Organizations states that any person who transfers, moves, or conducts any transaction involving funds, knowing they are proceeds of a crime, with the intent to conceal or disguise their source, is guilty of committing a money laundering offense.”

She added that Article (22) of the same law imposes strict penalties:

• Imprisonment of 1 to 10 years and a fine of no less than AED 100,000 and no more than AED 5 million, or both.

• “There is no room for leniency in such cases,” she said. “Ignorance of the law is not an excuse.”

Public prosecution issues a warning

The UAE Public Prosecution has also warned the public against this illegal behavior and falling into traps set by fraudsters and criminal gangs who exploit the trust and naivety of individuals to request money transfers to unidentified persons.

In its response to Gulf News, the Public Prosecution stated that using one’s personal ID to transfer money to someone else’s account may result in committing the crime of money laundering.

Transferring illicit funds or concealing their illegal source are both classified as acts of money laundering under UAE law.

To clarify, the Public Prosecution outlined the legal components of the crime:

• Money laundering offense: Never transfer money to someone you don’t know—you may be accused of laundering money. This crime essentially involves giving a legal appearance to funds obtained illegally by concealing or disguising their source through various methods of movement or transfer.

• Role of bank transfers: Bank transfers can serve as tools for laundering money, especially when used to conceal the origins of funds or mislead regulatory authorities.

• Legal risk: Individuals who transfer money to other people’s accounts, even unknowingly, may face legal consequences if the funds are later linked to illicit sources.

• Public prosecution’s advice: Exercise extreme caution when making any financial transfers. Always ensure the legitimacy of the money’s source to avoid any criminal suspicions.

• Additional guidance: If you’re unsure about the legality of the funds you’re about to transfer, it’s best to consult with your bank or relevant authorities before proceeding.

Penalties under cybercrime law

The UAE Public Prosecution, via its website and social media platforms, also clarified the penalties for transferring, possessing, using, or acquiring illicit funds through online networks.

Under Federal Decree Law No. 34 of 2021 on Combating Rumors and Cybercrimes, Article 30 stipulates the following:

Without prejudice to the provisions of the Anti-Money Laundering Law, any individual who deliberately uses an information network, electronic system, or any IT means to commit any of the following acts may be punished with:

• Imprisonment of up to 10 years

• A fine between AED 100,000 and AED 5,000,000, or both.

These acts include:

1. Transferring, moving, or depositing illicit funds to conceal or disguise their illegal source.

2. Hiding or disguising the truth about illicit funds, their source, movement, ownership, or related rights.

3. Acquiring, possessing, or using illicit funds while knowing their unlawful origin.

Combating money laundering

According to UAE law, a person is considered guilty of money laundering if:

• They are aware the funds originate from a felony or misdemeanor;

• They intentionally transfer, move, or use such proceeds to conceal or disguise their illegal source;

• They hide or obscure the nature, location, manner of handling, movement, ownership, or rights related to the proceeds;

• Or they acquire, possess, or use the proceeds upon receipt, or assist the original perpetrator in escaping punishment.

The bottom line: Don’t transfer money for strangers. The risks—legal and financial—are simply too high.