Counterfeit Money refers to the deceiving act of producing illegal and forged currency that closely resembles the official money. It is often produced with the aim of deceiving the public and defrauding businesses and individuals. The presence of counterfeit money mainly threatens the security of a country and its entire financial system. It sabotages the public trust, especially in cash transactions.
UAE’s zero-tolerance policy towards Counterfeit Money:
The financial system of the UAE is the backbone of the economy, and Counterfeit Money severely damages it. The economies are built on strengthen made banking, financial, and trading networks. The fake currency can lead to serious legal implications. It is a serious criminal offense as per the UAE law.
UAE has taken a zero tolerance policy towards Counterfeit Money that is categorized as major financial crimes. The UAE has been very active in global trade connections. It has a pivotal role in the financial system. The financial systems can be more understood with financial lawyers. They can explain the financial terms better than others.
The UAE has been making serious efforts to position itself as one of the leading financial hubs across the world. The authorities of the UAE have been vigilant in implementing the strict regulations along with modern and most advanced detection systems.
The prime focus remains to combat Counterfeiting. It also protects the individuals, investors, and businesses from substantial financial losses. Lawyers are professionally experienced and competent personnel for such subjects and work domains. The recommendation from such legal experts must be welcomed.
Laws governing Counterfeit Money in the UAE:
According to the UAE law, Counterfeit Money is a serious financial and criminal offense. The Federal Decree Law No. 2018 on Anti-Money Laundering and Combating the Financing of Terrorism, along with provisions, is part of the UAE Penal Code.
UAE penal Code defines Counterfeit Money, alteration, and the use of fake currency from coins and papers. The law applies strict punishments for those who are involved in producing fake currency.
Those who knowingly uses, distributes, or attempt to circulate the money a punishable criminal offenses. Furthermore, the possession of counterfeit currency is a criminal offense that is penalized.
Counterfeit Money in the UAE: Punitive Measures
There are harsh penalties for counterfeiting and using fake currency. The UAE has enforced strict penalties for those involved in counterfeiting.
The individuals who are found guilty of creating or distributing counterfeit currency face imprisonment, hefty charges, and jail sentences.
This also depends upon the severity of the offense. The UAE law permits the confiscation of Counterfeit notes and financial gains obtained from them, along with the printing equipment.
Besides, those people who knowingly accept or use Counterfeit Money will be charged even if they don’t know the manufacturer.
UAE law also strongly suggests that such suspicious activities must be immediately reported to the concerned authorities. It helps in avoiding legal consequences.
Ways to recognize Counterfeit Money
The UAE central bank is mainly responsible to constantly overseeing the activities regarding currency, coins, and notes security.
They make deliberate efforts to improve the security features and also prevent the activities of Counterfeiters. The prime aim is to protect the general public. It is essential to ensure the basic security measures are used in the UAE currency.
- The original notes always contain visible watermarks. The authentic currency watermark is visible when held up to the light.
- Color-Shifting Ink: Some of the denominations have color-shifting ink. The color changes when tilted or moved.
- Raised Printing: Genuine currency notes feel slightly textured, not plain when touched. It is because of its raised ink in printing.
- Security Threads: A visible metallic thread is part of the currency notes. The security threads run through the note and glow under UV light.
- Micro printing: The small and precise text is printed on the currency notes that counterfeit printers cannot duplicate or copy.
In case the currency note appears smoother, lacks security features, or appears poorly printed. There is a high chance of fakeness. In this case, it is better to refuse the acceptance of the note. Moreover, such instances must be reported to the nearest bank or police station.
Reporting acts of Counterfeiting in the UAE:
The UAE has always encouraged individuals and businesses to report counterfeit money as early as possible. In case an ordinary men suspect the usual action, they must report immediately. In this case, it is suggested to avoid returning it to the person who gave you. This act could be seen as knowingly circulating counterfeit currency.
Secondly, it is recommended to contact the nearby police station or the UAE central bank. They must report on the suspicious activity. Thirdly, it is necessary to provide details about where and how to receive the suspicious currency. Acting quickly will protect everyone from the legal and financial risk involved in the matter. The authorities may trace the counterfeit networks.
Implication of Counterfeit Money in the UAE:
The businesses and financial institutions in the UAE face serious risk related to Counterfeit Money. It may enter their operations, especially in the cash-driven sectors like retail outlets, restaurants, and others. They may face financial losses due to fake currency notes. Banks and exchange houses also bear the core responsibility towards the detection and reporting of such instances.
This could severely damage the cash flows and liquidity of the company if undetected for long. The companies need to train their workers to recognize the fake notes. They should also use detection tools and equipment like UV light scanners and special currency detectors.
Besides, banks must collaborate with the UAE law enforcement agencies on various aspects. They collaborate on monitoring the suspicious transactions. They may track down counterfeit activity taking place.
Technological Advancement
The UAE has invested heavily in bringing more advanced security with the help of modern and state of the art technologies to combat counterfeiting.
UAE Central Bank regularly updates the design of banknotes. They introduce innovative security features from time to time. Additionally, smart banking solutions are introduced to reduce reliance on cash.
Moreover, digital payments are highly encouraged in today’s modern world, making it harder for counterfeiters to distribute fake notes.
