Depositing money via others’ ID may end you up with money laundering charges in UAE

In what may seem like a normal scene at an ATM, a person is asked to help a stranger deposit money on the grounds that his card is not working or that he does not hold an ID. While responding to such a request may seem like a humane gesture, the law has a different opinion.

Depositing money into the bank accounts of unknown or unidentified people is regarded in the UAE as a conduct that may expose the depositor to legal accountability, especially if it later becomes clear that the beneficiary account is linked to organized crimes such as money laundering, terrorist financing, or drug trafficking.

Several cases were previously documented where individuals were prevented from making bank transfers due to suspicions about the nature of the beneficiary accounts. Investigations revealed that some individuals had made deposits based on casual requests, unaware of the seriousness of their actions.

Attorney Badr Abdullah Khamis explained that whoever conducts a financial transfer or makes a deposit must verify the source of the funds and if they are legitimate, the entity receiving the funds and the purpose of the transaction.

Transferring money to unknown people, especially at ATMs, under the pretext that they do not have an ID card, is a risky behavior, considering that it is the person using his ID to make the deposit who will be held accountable, even if he does not know the beneficiary, he said. These funds might be used for drug trafficking, financing terrorist groups, or other crimes, he added.

The law is clear in this regard, as article 2 of the law on combating money laundering crimes and financing of terrorism and illegal organizations stipulates that whoever transfers or converts proceeds or conducts any transaction with the aim of concealing or disguising their illegal source shall be considered a perpetrator of the crime of money laundering, he said.

Further, article 22 of the same law increases the penalty to a jail term between one year and 10 years and a fine of no less than Dhs100,000 and no more than Dhs5 million or either one of these two penalties, he said. No leniency or complacency can be considered in such cases and ignorance of the law does not exempt one from punishment, he added.

Attorney Musa Al Amri said the courts of law issued jail terms and money transfer bans against individuals found to have deposited funds into accounts linked to crimes, despite they were not directly involved.

He explained that direct transfers from one account to another are legally less risky than deposits via ATMs using someone else’s ID, which is considered more sensitive and requires extreme caution.

He pointed out that new instructions were issued by the Central Bank of the UAE and the Ministry of Justice which were aimed at closing loopholes and clearly assigning responsibilities.

Protection begins with rejecting any unjustified request and it is always better to consult your bank and retain any documents or messages that prove the transaction was carried out unintentionally or under duress, he said.

Attorney and legal advisor Dr. Ali Musbeh stated that in previous cases the courts of law convicted individuals who had transferred funds at the request of friends or acquaintances without asking about the source or purpose of these funds, and the accounts later turned out to be linked to money laundering networks.

He explained that direct bank transfers provide a degree of transparency, while cash deposits using someone else’s ID are legally more risky because they are sometimes used for cover-up operations.

Banks closely monitor these transactions and immediately report any suspicious activity to the Financial Intelligence Unit, he said, stressing that refraining from executing a suspicious request is a sound legal position and may even save you from a charge you had nothing to do with.

Meanwhile, legal advisor Mohammed Hussain stated that the phenomenon is on the rise, with some individuals resorting to begging others at ATMs, using various excuses.

What many people do not realize is that simply depositing money into a suspicious account, even without prior knowledge, can expose the depositor to investigation and possibly punishment if they fail to prove they were a victim of fraud or lack evidence to clear their name.