Financial cases soar in Abu Dhabi
abu dhabi — Abu Dhabi has witnessed a significant increase in the number of financial and commercial fraud cases in 2017 as compared to 2016. The Abu Dhabi Financial Prosecution said it handled 16,663 financial cases last year — an increase of 2,803 cases as compared to the previous year.
Dud cheques topped the list of financial crimes that were reported last year, followed by fraud and online crimes. Meanwhile bribery and money laundering cases registered a “significant decline”.
Officials said that verdicts were issued in 99 per cent of the cases.
Among the biggest commercial cases last year was the one that involved 51 men who were prosecuted for defrauding nearly 2,000 people out of Dh1 billion in a car investment scam. Investigations
Money laundering affects the national economy and financial stability because it’s a hidden economic activity and is illegal.” Hassan Mohammed Al Hammadi, head of Abu Dhabi Monetary Fund
showed that the main defendant in the case and his gang lured customers to buy cars from them and later sell the vehicles back to them at higher prices by offering them big profits.
The Abu Dhabi Court of Misdemeanours in November last year sentenced the three main defendants to 13 years in jail after they were found guilty of money laundering, fraud and engaging in unlawful activities. Their jail sentences were, however, reduced to three years on appeal. The appeal court also convicted the rest of the other men and ordered each to pay a fine of Dh100,000.
In another big case, a gang of 33 men were charged with attempting to steal Dh635 million from the account of an Abu Dhabi bank through electronic transfer.
The men — from India, Pakistani, US, Russia and Canada — were detained in May last year after the Abu Dhabi Financial Prosecution in coordination with the Abu Dhabi Police’s Criminal Investigation Department (CID) foiled their plot to unlawfully transfer the funds from the account of the local bank using sophisticated technology. Authorities said they had also managed to recover Dh625 million out of the total cash from the victims’ bank accounts within 24 hours after getting information about the fraud.
The Abu Dhabi Judicial Department (ADJD) last year said it was considering sending a proposal to the authorities concerned about the need to amend the federal penal code and toughen the penalty for money launderers and financial fraudsters.
Authorities said they wanted to see the punishment for those convicted of commercial fraud increased from three years in jail to seven years in certain cases. They also demanded that the convicts be made to pay back the stolen cash in addition to paying civil compensation to the victims.
Hassan Mohammed Al Hammadi, head of the Abu Dhabi Monetary Fund, said: “Money laundering affects the national economy and financial stability because it’s a hidden economic activity and is illegal.
“Scamsters spoil the investment environment and causes damage to capital markets. Frauds lead to loss of people’s cash and property. The act of obtaining money through fraudulent means instills bad morals in society.”
ismail@khaleejtimes.com