UNITED ARAB EMIRATES Law and Practice Contributed by: Stuart Paterson, Janine Mallis and Tania Forichon, Herbert Smith Freehills
1.3 Claims Against Parties Who Assist or Facilitate Fraudulent Acts Criminal Liability Accomplices, or individuals who assist or facili - tate fraudulent acts, will be subject to the same punishment as imposed on the principal offend - er. The provisions of Articles 45 and 46 of the New Penal Code apply when determining whether an individual is an accomplice. 1.4 Limitation Periods Limitation Periods Under the Criminal Procedures Law Article 21 of the Federal Law No 38 of 2022 (the “Criminal Procedures Law” ) provides that the limitation period – starting from the date on which the crime was committed – is: • 20 years for felonies; • five years for misdemeanours; and • one year for contraventions. The applicable limitation period, for felony or misdemeanour, is determined by the serious- ness of the fraud. Limitation Periods Under the Civil Code Article 298 of the Civil Code provides that the general limitation period for such claims arising is three years from the date on which the vic - tim became aware of the harmful event and the identity of the perpetrator, subject to a maximum of 15 years from the date on which the harmful act occurred. If criminal proceedings regarding the relevant events are pending at the time the three-year period expires, the limitation period is extended.
ADGM and DIFC In the ADGM, the limitation period for civil claims is six years from when the fraud was discovered or when it could have been discovered with rea - sonable diligence. In the DIFC, where a cause of action arises due to fraud by the defendant, there is no time limit before an action must be commenced for fraud. In relation to other tort claims, such as negligence or misrepresentation not arising out of fraud, a claim can be brought no later than 15 years from the date the cause of action arose. A cause of action is held to arise on the earliest date the claimant knew or ought reasonably to have known about the loss that gives rise to the cause of action. A claim for contribution from a third party must be brought within three years of the judgment or settlement. 1.5 Proprietary Claims Against Property Onshore UAE – Criminal Article 83 of the New Penal Code provides that once the commission of a criminal offence has been established: • property (including money and assets) caught and connected with, or acquired as a result of, the offence may be confiscated if such confiscation does not prejudice the rights of bona fide third parties; • if the production, use, possession, sale or offer for sale of the property by a bona fide third party constitutes a separate offence to the primary offence (ie, the property is a proceed of crime), then the property must be confiscated regardless of the rights of the bona fide third party; and • if it is impossible to confiscate the property due to the rights of bona fide third parties, then the courts will impose a fine equal to the
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