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Misappropriation of Funds, Lost Property and Mortgaged Assets

Keeping property that is not yours, disposing of mortgaged or attached assets, and holding proceeds of a crime.

Last updated 9 October 2026. Statutes checked against the official text.

Advocate Amal Khamis
Speak to a lawyerAdvocate Amal KhamisCriminal defence, AK Criminal Lawyers

When is keeping someone else's property a crime?

Article 454 of the Federal Decree-Law No. 31 of 2021 (Crimes and Penalties Law) punishes anyone who knowingly takes possession, with intent of appropriation, of lost property belonging to another or of property he acquired wrongfully or through force majeure, with incarceration of up to two years or a fine of up to AED 20,000.

The words that matter are knowingly and intent of appropriation. Finding something and handing it in is not an offence.

What about assets that are mortgaged or under attachment?

Article 455 applies the same penalty to anyone who embezzles or attempts to embezzle movable property he has previously mortgaged to secure a debt, and to an owner appointed custodian of his own property under judicial or administrative attachment who embezzles anything from it.

This catches a borrower who sells a mortgaged vehicle or stock, or a business owner who removes items that are under attachment.

What if I receive money or goods that came from a crime?

Article 456 says whoever knowingly possesses or hides proceeds of a crime, without taking part in it, is punished with the penalty of the crime they came from.

If you did not know but obtained them in circumstances suggesting their source was illegal, the penalty is incarceration of up to six months and/or a fine of up to AED 20,000. Money laundering is dealt with separately in our money laundering guides.

Is there an exemption if I report it?

Yes. Under Article 457 a person who takes the initiative to inform the judicial or administrative authorities of the crime and its perpetrators before it is discovered is exempted from the penalty.

If the information comes after discovery, the court may exempt the person if it led to the arrest of the perpetrators.

What should I do first?

  1. Stop dealing with the property

    Do not sell, move or hide it.

  2. Record how you came to have it

    Dates, who gave it, what you paid.

  3. Ask about reporting early

    Article 457 rewards early disclosure, but the timing is critical.

  4. Speak to a lawyer before you talk to anyone

    Including the owner.

Call us on +971 50 653 1334 or message us on WhatsApp. We answer at any hour.

Frequently asked questions

Is keeping lost property a crime?

Yes if done knowingly and with intent of appropriation (Article 454).

Can I be punished for receiving stolen goods?

Article 456 punishes knowingly possessing proceeds of a crime. If you did not know but should have suspected, a lower penalty applies.

What if I tell the police first?

Article 457 provides exemption from the penalty if you inform before the crime is discovered.

What is the usual penalty?

Articles 454 and 455 provide incarceration of up to two years or a fine of up to AED 20,000.

Related guides

Sources

Source: Federal Decree-Law No. 31 of 2021 (Crimes and Penalties Law), official English text on the UAE Legislation portal, checked 9 October 2026. The portal lists the law as active and last updated on 7 September 2026. The Arabic text prevails over translations.

This page is general information, not legal advice.

If you or someone close to you is under investigation, speak to us early.

Call or message us at any hour. Tell us what has happened and where the case is. We will explain the next step.