The Philosophy Behind the Penalty Imposed for the Crime of Money Laundering

Within the framework of the penal policy adopted by the UAE legislator, the penalties related to the crime of money laundering and terrorism financing reflect the nation’s determination to protect its economy and security. Under Federal Decree-Law No. (20) of 2018, as amended, the legal philosophy of these penalties emerges clearly: they are not merely instruments of retribution, but rather tools to restore balance between the financial and social order on one hand, and to safeguard the interests of the state and society on the other.

UAE legislation addressing money laundering embodies a dual philosophy of punishment—aimed at both deterrence and reform. The penalties are graded according to the seriousness of the offense, ranging from fines and imprisonment to life imprisonment. This gradation demonstrates the legislator’s awareness of the severe consequences of such crimes, which extend beyond financial harm to threaten national and international security and the stability of financial institutions. Thus, punishment here is not only a response to the offender’s actions but also a means of preserving the legal and social order and achieving general deterrence, ensuring that such violations are not tempting to others.

The relevant legal provisions also take into account the circumstances surrounding the commission of the crime, such as abuse of power, recidivism, or commission through organized groups or associations. These factors aggravate the penalty, serving purposes beyond merely punishing the offender. The legislator, through such provisions, sends a strong societal message emphasizing the importance of protecting the financial and security systems.

Moreover, UAE legislation does not limit punishment to natural persons involved in money laundering crimes; it extends to legal entities such as companies and institutions. If a company representative commits a money laundering or terrorism financing offense, the company itself may be deemed liable, facing penalties that could include dissolution or closure of its premises—measures intended to protect the financial system and prevent recurrence of violations.

As mentioned earlier, the penalties include fines, imprisonment, deportation, confiscation of proceeds, and even mandatory publication of the judgment summary. These gradations reflect the concept of proportional responsibility, ensuring that the punishment corresponds to the magnitude of harm caused, the offender’s intent, and the authority he exercised.

Naturally, the legislator links the act to its consequences: every attempt to conceal the source of illicit funds or to use such proceeds for terrorism financing constitutes not merely a legal violation but a direct threat to public security and social order. Hence, the penalty serves not as an end in itself but as a means to protect rights and preserve the integrity of society.

In summary, Federal Decree-Law No. (20) of 2018, together with its amendments, provides an integrated framework of penalties that reflects the philosophy of modern criminal law—combining retributive, deterrent, and reformative justice in clear provisions. These penalties are scaled according to the gravity of the crime and its circumstances, all with the primary aim of safeguarding society and the financial system from serious violations.