UAE prosecutor warns against renting bank accounts to money launderers

A senior Sharjah prosecutor has warned that renting out a bank account, setting up a fake company or moving money for someone else can expose ordinary people to serious money laundering charges. Dr. Abdullah Mohammed Al Ali, head of prosecution and assistant prosecutor at the Sharjah Public Prosecution, gave the warning on Sharjah TV's Qadiya Lil Hiwar program, Gulf News reported.

How are ordinary people getting pulled into money laundering in the UAE?

Criminals are increasingly exploiting digital banking, social media, digital assets and legitimate looking businesses to disguise illicit money and move it quickly between accounts. Some schemes are sophisticated, while others rely on ordinary residents who are offered cash to lend their bank accounts or carry out transfers on someone else's behalf.

"People need to understand that a bank account is a personal right," Al Ali said. He warned residents against allowing others to use their accounts or banking details.

Why is renting out a bank account illegal in the UAE?

Al Ali said some individuals open four or five bank accounts and hand them over to others for money. The accounts are then used to receive and move illicit funds.

He said the accounts may be used by people without legal residency or those facing residency problems who do not want accounts in their own names. Criminals can move funds through several rented accounts, making it harder to identify who controls the money.

"There is no legal concept of renting a bank account," Al Ali said.

He explained that this differs from a legitimate arrangement in which an account holder formally authorizes another person to manage their finances through the bank's official procedures. In such cases, the bank knows who is authorized to operate the account.

With a rented account, the holder may hand over access for payment, then face questions about transactions carried out in their name. Al Ali said authorities can examine whether the account was used to receive, transfer or conceal criminal proceeds, along with the holder's role and knowledge.

He warned residents not to assume that saying they rented out their account will protect them. Residents should also never hand over bank cards, account details, PINs, passwords or other banking access credentials.

He said newly arrived residents are among the most common targets of account rental schemes. Many fail to recognize the legal risks until they become subjects of financial investigations.

How do fake companies help launder money?

Al Ali said criminals also use fictitious companies to give illicit funds the appearance of legitimate business income. A company may have a trade license and a registered address but little or no genuine commercial activity.

He said criminals may create fake sales and purchases, issue false invoices or record transactions that never happened before transferring the funds to personal accounts, other companies or accounts outside the UAE. He urged businesses to maintain accurate records so legitimate transactions can be verified.

How is social media used to target money laundering victims?

Al Ali said fraudsters advertise products and property on platforms such as Instagram and Snapchat, often at unusually low prices. A buyer may be asked to pay a deposit or the full amount before receiving the product.

After payment, the victim may find the product does not exist and the seller has disappeared. Scammers may also claim the offer is available for a limited time or that another buyer is ready to pay, pressuring victims to transfer money quickly.

Al Ali urged consumers to be suspicious of prices that make little commercial sense. He said consumers should compare prices, verify sellers and check whether a business actually exists before transferring money.

Why do digital assets make money laundering harder to trace?

Al Ali said digital banking and digital assets allow transactions to happen extremely quickly. Money obtained through fraud can be used to purchase digital assets and then transferred to another account or an entity outside the UAE.

He said the speed and complexity of these transactions can make the movement of criminal proceeds harder to identify.

Can helping someone with a transfer lead to legal trouble?

Al Ali warned against making transfers for someone else, even as a favor. He described cases where a person is asked to send money to relatives because the requester has a problem with their identity documents or lacks account access.

Months later, the person who made the transfer could be contacted by authorities and asked to explain it. "Helping people is a good thing, but there are matters involving bank accounts and financial transfers that people should stay away from," Al Ali said.

What should you do if unexplained money appears in your account?

Al Ali said an unexplained transfer should never be treated as a windfall. He gave the example of a person who accidentally sends money to the wrong account due to an incorrectly entered account number.

He said residents who receive an unexpected payment should establish its source and contact the appropriate authorities or their bank rather than moving the money.

Is not knowing the money was illegal a valid defense?

Al Ali said a common misconception is that a person cannot be held responsible if they did not know money was connected to a crime. He said each case is assessed through investigation to determine whether the individual deliberately participated, facilitated the crime or was an innocent victim.

He stressed that ignorance of the law is not an excuse. Investigators consider the circumstances, the person's actions and the available evidence.

Does moving a small amount of money still count as money laundering?

Al Ali rejected the idea that moving a small amount of money is harmless. He said whether the amount is 1,000, 2,000 or 3,000 dirhams, the circumstances and the person's role remain important.

He compared it to theft, noting that stealing a small amount remains a crime even though the value is lower.

How do banks detect suspicious transactions?

Al Ali said banks may question transactions that do not match a customer's declared financial circumstances. He gave the example of a person who reports a monthly salary of 5,000 dirhams but suddenly has large sums entering and leaving the account.

He said the customer may be asked to explain whether the funds are linked to a business, investment or another legitimate source. If the transactions cannot be explained, the bank may report the matter to authorities.

How does money laundering affect legitimate businesses?

Al Ali said illicit funds entering legitimate businesses can distort prices and undermine fair competition. A money launderer may sell goods at extremely low prices because profit is not the main objective, putting law-abiding businesses at a disadvantage.

Can UAE authorities trace money moved overseas?

Al Ali said leaving the UAE does not end an investigation. He said UAE authorities work with foreign governments through extradition agreements, asset freezing arrangements and mutual legal assistance treaties to track criminal proceeds and recover assets.

What are the penalties for money laundering in the UAE?

Al Ali said money laundering offenses carry some of the toughest financial crime penalties under UAE law. Punishments can include prison terms of 15 to 25 years, fines of up to 200 million dirhams, confiscation of illicit proceeds and closure of companies involved in laundering activities.

He said foreign offenders may also face deportation. He stressed that all participants in a laundering scheme, including account holders, facilitators and those transferring funds, may be treated as perpetrators under the law.

Al Ali urged residents to avoid misleading investment offers, verify online sellers and consult others before making financial decisions involving unusually attractive returns. He also encouraged the public to report suspected fraud and money laundering through police digital platforms.