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Abu Dhabi /Â WAM
The Abu Dhabi Judicial Department has organised the 40th Media Summit, entitled “Bogus Investment Portfolios and their Negative Effects on Individuals and Society”, with the aim of assisting in expanding the culture of law, while raising awareness among individuals in society about the dangers of these portfolios.
The summit warned about the negative effects of financial crimes on employment, individuals, society and the national economy, describing it as a hidden and illegal economic activity, as well as its corruption of the investment atmosphere, damage to money markets and the loss of an individual’s rights and their money, while embedding immoral values through illegal gains and the desire for quick wealth.
Hassan Mohammed Al Hammadi, Chief Prosecutor of Public Funds in Abu Dhabi, stated that bogus portfolio involves collecting money from individuals on the basis of investing in an economic activity in exchange for specified interests, without being licensed by official authorities. He added that the employment of funds is a behaviour in which some investors collect people’s money through publicity and advertisements in any way possible, to convince people to invest their money in exchange for profits, both orally or in writing.
He added that Federal Law No. 2 (2009) on establishing the Economic Development Department, which dictates that no one can practice any economic activity, or a branch of this activity, before obtaining a license from relevant authorities. Anyone who breaks this law can be punished by imprisonment of a sentence of no less than three months or a fine of no less than AED40,000.
He added that under Federal Law No. 9 (2014), an update of Federal Law No. 4 (2002) on combatting money laundering, crimes of financial fraud are considered a main source of money laundering. He said that anyone who commits or attempts these illegal acts can be punished by imprisonment for a period of up to 10 years or a fine of up to AED100,000.