UAE Federal Law: Fundraising without a license is a criminal offence

The UAE Public Prosecution has clarified that calling for or promoting fundraising activities without obtaining the required license constitutes a criminal offence, warning that such conduct may result in legal accountability.

In an awareness video published yesterday through its social media platforms as part of the Criminal Media Center’s “Awareness” campaign, the Public Prosecution highlighted the offence of inviting or promoting donations without proper authorization. It explained that any person who creates, manages, supervises, or publishes information on a website, information network, or any information technology platform to call for or promote donations without a license from the competent authority—or in violation of licensing conditions—shall be subject to penalties under Article 46 of Federal Decree-Law No. (34) of 2021 on Combating Rumors and Cybercrimes.

The dissemination of this legal information comes within the Public Prosecution’s ongoing efforts to enhance legal culture across society and raise public awareness of applicable legislation in the UAE, with the aim of promoting a culture of law as a way of life.

Earlier yesterday, the General Secretariat of the National Committee for Combating Money Laundering and the Financing of Terrorism and Illegal Organizations warned—within its digital awareness campaign “Understand It Correctly”—of the risks associated with individuals transferring funds on behalf of others or collecting donations through social media groups for charitable purposes or to assist those in need. It stressed that such practices may expose individuals to legal liability and place them under suspicion, even if undertaken with good intentions.

Legal adviser at the General Secretariat, Dr. Abdullah Al-Harbi, noted that the holy month of Ramadan typically witnesses an increase in individual initiatives aimed at supporting people in financial distress and humanitarian cases. Some individuals, he explained, create groups on messaging applications such as WhatsApp to collect funds and transfer them to beneficiaries.

However, despite the humanitarian motives, these actions may constitute clear violations of applicable legislation, potentially exposing organizers to summons and questioning by the competent authorities regarding the sources of funds, methods of collection, and channels of disbursement.

He added that fundraising—even when intended for charitable purposes—is subject to clear legal frameworks and must not be conducted individually or randomly. He urged those wishing to assist people in need to direct their donations exclusively through officially licensed and authorized entities and to refrain from creating groups or receiving funds for this purpose without proper authorization.

Under Federal Law No. (3) of 2021 on the Regulation of Donations, Al-Harbi explained that no entity may conduct or organize any activity aimed at collecting donations without first obtaining a permit from the competent authority. Calling for or promoting donations through websites or the information network without authorization is considered a criminal offence punishable by law.

In this context, Article (46) of Federal Decree-Law No. (34) of 2021 on Combating Rumors and Cybercrimes stipulates imprisonment and/or a fine for anyone who establishes, manages, supervises, or publishes information via electronic platforms to call for or promote donations without obtaining a license from the competent authority or in violation of licensing conditions.

Dr. Abdullah Al-Harbi also warned of the dangers of transferring funds on behalf of others, noting that some individuals may view this behavior as a helpful “service” motivated by goodwill or the desire to earn reward. However, it may expose them to serious legal risks. Federal Decree-Law No. (10) of 2025 on Combating Money Laundering and the Financing of Terrorism and Illegal Organizations provides that a crime is established when a person knows—or when sufficient evidence or indicators suggest knowledge—that funds are derived, wholly or partially, from criminal activity, and then intentionally transfers, moves, or conducts transactions involving those funds with the aim of concealment or disguise.

He further explained that liability also extends to anyone who allows others to use their bank account while knowing, or where sufficient indicators exist, that the purpose is to misuse the account.

Al-Harbi emphasized that crimes may begin with seemingly simple acts, such as a message via a messaging application, a transfer link, or publishing a bank account number on social media platforms. He stressed the importance of raising awareness and complying with the law, particularly during seasons characterized by increased generosity and trust.

He urged individuals to exercise the highest levels of caution before making any financial transfer on behalf of others and to promptly report any suspicions to the competent authorities to safeguard individuals and protect society from exploitation and legal risks.