Social media platforms are flooded with adverts encouraging people to invest in cryptocurrency schemes, with promises of high returns despite high volatility. Reuters
Social media platforms are flooded with adverts encouraging people to invest in cryptocurrency schemes, with promises of high returns despite high volatility. Reuters
Social media platforms are flooded with adverts encouraging people to invest in cryptocurrency schemes, with promises of high returns despite high volatility. Reuters
Social media platforms are flooded with adverts encouraging people to invest in cryptocurrency schemes, with promises of high returns despite high volatility. Reuters

UAE

Prosecutors issue new warning over cryptocurrency scams

Tough new laws were announced last year to tackle the promotion of unauthorised currency schemes

Gillian Duncan
Gillian Duncan

June 13, 2022

  • English
  • Arabic

Fraudsters promoting cryptocurrency scams online face prison and fines of up to Dh500,000, prosecutors have warned.

They have reminded people of the tough penalties announced last year as part of a series of legal reforms.

The legislation broadened the country’s cyber crime laws to cover the advertisement of rogue cryptocurrency schemes, which are not recognised by UAE authorities.

Posting misleading adverts or inaccurate data online or encouraging dealing in a virtual or digital currency not recognised in the UAE could led to a fine of between Dh20,000 and Dh500,000, according to a video released by the Public Prosecution on social media.

Offenders can also be imprisoned for up to five years. Previous laws banned promoting cryptocurrencies but did not penalise it.

“The Public Prosecution noted that, as per article 48 of the Federal Decree-Law No 34 of 2021 on Combatting Rumours and Cybercrimes, imprisonment and a fine of not less than Dh20,000 and not more than Dh500,000, or one of the two, shall be the punishment of any person who, through information networks, information technology solutions or online platforms, commits any of the following: promoting goods or services through misleading advertisement or using false data,” said a statement released by state news agency Wam.

“[Or] advertising, promoting, brokering, or dealing in any form, or encouraging the dealing in a virtual or digital currency, a stored value unit, or any unit of payment that is not officially recognised in the UAE or without obtaining a license from the competent authority.”

Authorities take action over crypto crimes

Cyber criminals have sought to exploit the growing popularity of cryptocurrencies around the world.

Cryptocurrencies are a form of digital money, which do not have a physical form such as coins or notes.

They can be stored in a digital wallet and, while they cannot be held in the hand, they have an allotted value to be used to purchase goods.

Abu Dhabi Police have, in the past, warned people to beware of fake cryptocurrency schemes promising instant wealth.

In 2018, a Dubai court sentenced two Indians, Sydney Lemos and Ryan Fernandez, to more than 500 years in jail each for their role in an elaborate fake currency scheme.

Investigators believe more than 7,000 investors from around the globe were conned out of nearly $500 million (Dh1.8 billion) in the scam by Exential Investments Inc, once based in Dubai Media City.

Tomorrow 2021
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Favourite Meal: Chicken Caesar salad

Hobbies: Travelling, going to the gym

Inspiration: Father, who was a captain in the UAE army

Favourite read: Rich Dad Poor Dad by Robert Kiyosaki and Sharon Lechter

Favourite film: The Founder, about the establishment of McDonald's

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The flights

Emirates flies from Dubai to Phnom Penh via Yangon from Dh2,700 return including taxes. Cambodia Bayon Airlines and Cambodia Angkor Air offer return flights from Phnom Penh to Siem Reap from Dh250 return including taxes. The flight takes about 45 minutes.

The hotels

Rooms at the Raffles Le Royal in Phnom Penh cost from $225 (Dh826) per night including taxes. Rooms at the Grand Hotel d'Angkor cost from $261 (Dh960) per night including taxes.

The tours

A cyclo architecture tour of Phnom Penh costs from $20 (Dh75) per person for about three hours, with Khmer Architecture Tours. Tailor-made tours of all of Cambodia, or sites like Angkor alone, can be arranged by About Asia Travel. Emirates Holidays also offers packages. 

How to help

Donate towards food and a flight by transferring money to this registered charity's account.

Account name: Dar Al Ber Society

Account Number: 11 530 734

IBAN: AE 9805 000 000 000 11 530 734

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To ensure that your contribution reaches these people, please send the copy of deposit/transfer receipt to: juhi.khan@daralber.ae

The specs
 
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
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The biog

Name: Mohammed Imtiaz

From: Gujranwala, Pakistan

Arrived in the UAE: 1976

Favourite clothes to make: Suit

Cost of a hand-made suit: From Dh550

 

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

The specs

Engine: 2.0-litre 4cyl turbo

Power: 261hp at 5,500rpm

Torque: 405Nm at 1,750-3,500rpm

Transmission: 9-speed auto

Fuel consumption: 6.9L/100km

On sale: Now

Price: From Dh117,059

Padmaavat

Director: Sanjay Leela Bhansali

Starring: Ranveer Singh, Deepika Padukone, Shahid Kapoor, Jim Sarbh

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Updated: June 13, 2022, 8:47 AM
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