Dubai court rejects money-laundering defence, orders man to repay Dh27 million

Dubai: The Dubai Civil Court has ordered the owner of a debt collection company to repay Dh27 million to a lubricant and oil trader, rejecting his claim that the funds in question were tied to money laundering and suspicious activity, Emarat Al Youm reported.

The dispute began after the trader contracted the Asian businessman and his staff to collect payments from clients on his behalf and to settle debts with suppliers, since the trader lacked a local corporate presence. The arrangement was managed through a WhatsApp group, where instructions, receipts and settlement records were exchanged.

According to court filings, the company successfully processed payments for a time, but eventually withheld Dh27,057,000. When pressed for repayment last year, the firm stopped responding to the trader’s calls and barred him from entering its offices. Police later confirmed that the owner had left the UAE for Germany, while his staff promised—but failed—to return the money.

The trader pursued legal action, and a court-appointed expert confirmed the existence of a contractual relationship and outstanding dues. The defendant countered with a memorandum denying liability, questioning the legitimacy of the funds, and requesting a panel of IT experts to review the WhatsApp messages. He also sought to refer the matter to prosecutors on suspicion of money laundering.

The court dismissed those arguments, ruling that the expert’s findings were sufficient and that the defendant had offered no evidence absolving him of responsibility. It also cited the legal principle that “no one may take another’s property without lawful cause.” In its final judgment, the court ordered the businessman to repay the full amount with legal interest.