Cyber criminals promoting cryptocurrency scams online will face five years behind bars and fines of up to Dh1 million under tough new UAE laws introduced to protect the public from financial fraud.
The clampdown was introduced as part of a series of sweeping legal reforms announced by President Sheikh Khalifa last month.
The new legislation broadens the country's current cyber crime laws to cover the advertisement of rogue cryptocurrency schemes which are not recognised by UAE authorities.
“As per article 48, posting misleading ads or inaccurate data online about a certain product will be punishable with jail and/or a fine between Dh20,000 and Dh500,000,” said Dr Hassan Elhais, of Al Rowaad Advocates.
“The same penalty applies to members of the public who promote cryptocurrencies unrecognised by authorities in the country.”
Dr Elhais explained that previous laws banned promoting cryptocurrencies but didn’t penalise it.
“The amendments introduced punishments against the offence, which is a first for the UAE,” he said.
He said article 41 of the law complements the previous article in order to boost online safety and better protect people from falling victim to financial crimes.
“It imposes a penalty of five years in prison and/or a fine between Dh250,000 and Dh1 million against those who promote electronic currencies or fake companies to raise money from the public without a licence from competent authorities,” he added.
UAE seeks to protect public
Cyber criminals have sought to exploit the growing popularity of cryptocurrencies around the world for their own gain.
Cryptocurrencies are a form of digital money, which does not have a physical form like coins or notes, but is instead virtual.
They can be stored in a digital wallet and, while they can't be held in your hand, they have an allotted value to be used to purchase goods.
Earlier this year, Abu Dhabi Police warned people to beware of fake cryptocurrency schemes promising instant wealth.
The force called on people not to be duped by adverts promising quick and easy financial gains.
Dubai in May also warned about cryptocurrency fraud after false statements linking it to the Dubai Coin were circulated.
In 2018, a Dubai court sentenced two Indian fraudsters, 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 across 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.
Cryptocurrency scams have been reported in countries across the world.
Six people were arrested over a €30 million ($36.2m) cryptocurrency scam in May that targeted hundreds of people across Europe.
German police launched an investigation into a gang after citizens reported losses of €7m from the investment fraud.
Cyber law updated
The revised law also sets out punishments of jail time or a fine between Dh50,000 to Dh200,000 or both against offenders who create fake email accounts or website impersonating others.
The penalty increases to two years in prison if the offender used the fake accounts to defame the people they have impersonated.
The UAE is continuing to take action against those circulating fake news by using so-called 'bots' to spread misinformation.
“Article 54 states that using or modifying electronic robots to share, re-share or circulate fake news in the country can be subject to a prison term of two years or a fine not less than Dh100,000 and up to Dh1 million, or both,” said Dr Elhais.
Key findings of Jenkins report
- Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
- Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
- Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
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.”
Islamophobia definition
A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.
White hydrogen: Naturally occurring hydrogen
Chromite: Hard, metallic mineral containing iron oxide and chromium oxide
Ultramafic rocks: Dark-coloured rocks rich in magnesium or iron with very low silica content
Ophiolite: A section of the earth’s crust, which is oceanic in nature that has since been uplifted and exposed on land
Olivine: A commonly occurring magnesium iron silicate mineral that derives its name for its olive-green yellow-green colour
The%20specs
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J%20Street%20Polling%20Results
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The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
- not have been convicted of offences or crimes involving moral turpitude
- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
- undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
First Person
Richard Flanagan
Chatto & Windus
Museum of the Future in numbers
- 78 metres is the height of the museum
- 30,000 square metres is its total area
- 17,000 square metres is the length of the stainless steel facade
- 14 kilometres is the length of LED lights used on the facade
- 1,024 individual pieces make up the exterior
- 7 floors in all, with one for administrative offices
- 2,400 diagonally intersecting steel members frame the torus shape
- 100 species of trees and plants dot the gardens
- Dh145 is the price of a ticket
The President's Cake
Director: Hasan Hadi
Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem
Rating: 4/5
