In a recent social media update, the UAE Public Prosecution (PP) has clarified the consequences of collecting money without a proper license. This is important information for everyone to know.
As per Article No. 41 of Federal Decree Law No. 34 of 2021, individuals who encourage or advertise competitions or cryptocurrencies, or those who set up fake companies or portfolios to gather money from the public for investment, management, or development without the necessary approval, can face serious penalties.
Up to Dhs1 Million Fine for Violation of Rules
The punishment for such actions includes imprisonment for up to five years and a monetary fine ranging from Dhs250,000 to Dhs1 million. Additionally, the court may require the return of the collected funds.
The UAE Public Prosecution aims to enhance legal awareness among the community by sharing updates like these. It’s essential to stay informed about the latest laws in the country to avoid legal issues.