Guide · updated 16.10.2026 · 8 min read · Lucent Legal team

Breach of trust in the UAE: when a money dispute becomes a criminal case

Breach of trust (khiyanat al-amana in Arabic) means misusing money or property someone handed you on specific terms. Article 453 of Federal Decree-Law No. 31 of 2021 defines the offence. The charge comes up in disputes between business partners, with employees and with agents, when one side goes to the police instead of a civil court.

What Article 453 says

The prosecution has to show three things.

1. The property was handed over on a recognised basis. The article lists trust (safekeeping), lease, mortgage, loan for use and proxy. It treats as a proxy a co-owner of joint property, someone managing another's property out of necessity, and anyone given an item to use for the owner's or a third party's benefit.
2. The person embezzled, used or squandered it. For example, they moved money from a shared company account to personal spending, or sold entrusted goods and kept the proceeds.
3. It caused harm to the person entitled to the property.

The property can be money, written instruments or any movable asset. The article doesn't mention real estate.

Two neighbouring articles carry up to 2 years in prison or a fine of up to AED 20,000:

• Article 454: keeping lost property that belongs to someone else, or property received by mistake or through force majeure;
• Article 455: disposing of your own property after pledging it as security for a debt, or after it was attached and left in your custody.

Who gets accused most often

The law has no list of professions, but Article 453 covers the typical cases:

• A business partner who used shared money or company assets for other purposes. The law treats a co-owner as a proxy.
• An employee handed cash for purchases, a till or stock on account.
• An agent or manager acting under a power of attorney, such as a broker who took a client's money for a specific deal, or a property manager who didn't pass on rent.
• Someone renting an item, such as a car or equipment, who then sold it.

If a dispute with a partner has reached the point of a lockout, read disputes with a business partner and a partner blocked your access to the company first.

Breach of trust, fraud or debt

The documents draw the line between these: the contract, the payment reference, the messages. The prosecution and the court decide how to classify a given case.

Penalties and consequences

• Main penalty: imprisonment (1 month to 3 years under Art. 70) or a fine. The legal minimum fine is AED 1,000, and the cap for misdemeanours is AED 5,000,000 unless the article says otherwise (Art. 72).
• Deportation: the court may deport a foreigner sentenced to prison for a misdemeanour (Art. 126).
• Travel ban: the prosecutor can ban travel while the case runs (Art. 99 of Law No. 38/2022).
• Civil claim: the victim can claim the money back and compensation, separately or within the criminal case.

If the victim is the accused's spouse, parent or child, the case can only start on the victim's complaint, filed within 3 months of learning about the offence and the offender (Art. 11 of Law No. 38/2022).

Settlement and waiver

Article 349 of Law No. 38/2022 puts Articles 453, 454 and 455 on the list where criminal settlement is allowed:

• the parties declare the settlement at the prosecution or in court, at any stage, even after the judgment becomes final (Art. 350);
• a settlement with a condition or time limit isn't accepted (Art. 350);
• settlement ends the case or suspends enforcement of the sentence (Art. 357);
• the victim keeps their civil rights unless the agreement covers them (Art. 358).

The Penal Code adds that for Articles 453 and 454, the prosecution suspends a prison sentence once the victim waives the claim or settles (Art. 84).

In practice, returning the money and getting a signed waiver from the victim can close the case. Negotiate only through a lawyer and without pressure: threats turn a money dispute into a new case. The procedure is in closing a criminal case.

If you're the one accused

1. Gather the documents your position rests on: the contract, the company's articles, partner resolutions, bank statements, messages about what the money was for.
2. Don't give a police statement without an interpreter, and don't sign what you can't read.
3. Check for a travel ban before going to the airport: see travel bans in the UAE.
4. Decide with your lawyer whether to settle and repay, or whether your position is strong enough to defend.

If you're the victim

1. File a report with the police or the prosecution, with proof of the transfer and its purpose: see filing a police report in Dubai.
2. Decide what you need more: a criminal case or your money back. A settlement under this article ends the case, so write the repayment and the waiver of civil claims into the agreement.
3. If the money has already left the company, discuss a civil claim and an asset freeze as well.

When you need a lawyer

• A former partner filed the complaint in the middle of a corporate dispute.
• The amount is large and you already face a travel ban.
• You're the victim and can't tell whether to go to the police or a civil court.
• Both sides want to settle, and the agreement has to pass the prosecution.

Lucent Legal is a management consultancy (DET licence No. 1192929). We review the documents, assess whether the dispute is criminal or civil, and prepare your position and a draft settlement. At the prosecution and in court, a partner advocate licensed in the UAE represents you. No one can promise the outcome, including us. Other charges are in UAE criminal law.

Topic: UAE Criminal Law 2026

Get a lawyer's help: Criminal lawyer

This material is for information only and is not legal advice. UAE law changes — a lawyer will assess how it applies to your situation.