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reach of Trust, Appropriation of Lost Property, and Misappropriation of Pledged or Seized Movables Under UAE Criminal Law
Federal Decree-Law No. (31) of 2021 Issuing the UAE Crimes and Penalties Law protects ownership and lawful interests in movable property by criminalizing distinct forms of interference that arise from abuse of entrusted possession, exploitation of accidental possession, and unlawful appropriation of property subject to pledge or seizure. The law structures liability based on how the offender came into possession of the property: through an entrusted relationship, through loss or mistake or force majeure, or through a pledge or seizure that restricts lawful dealing in the movable.
Article (453): Breach of Trust in Entrusted Movable Property
Article (453) – Federal Decree-Law No. (31) of 2021 Issuing the Crimes and Penalties Law provides that any person who embezzles, uses, or dissipates sums of money, bonds, or any other movable property, to the detriment of the right holder, shall be punished by imprisonment or a fine, where the property was delivered to him by way of deposit, lease, pledge, loan for use, or agency.
For the purpose of applying this provision, the article further provides that the following are treated as “agent” cases: a partner in jointly owned property, a person acting without authority in relation to another’s property, and a person who receives something to use it for a specific matter for the benefit of its owner or another. This expands the scope of criminal protection to practical situations where the possession is based on confidence and limited purpose.
Article (454): Appropriation With Intent to Own Lost Property or Property Received by Mistake or Force Majeure
Article (454) – Federal Decree-Law No. (31) of 2021 addresses appropriation arising from accidental possession. It punishes by imprisonment for a period not exceeding two (2) years, or by a fine of not less than AED 20,000, any person who appropriates with intent to own: (i) lost property belonging to another, or (ii) property that came into his possession by mistake or due to force majeure, while knowing that fact.
The offense is therefore anchored in the act of appropriation “with intent to own,” the nature of the property (lost, mistakenly possessed, or obtained by force majeure), and the offender’s knowledge.
Article (455): Misappropriation or Attempted Misappropriation of a Pledged Movable, and Misappropriation of Seized Movables by the Appointed Custodian Owner
Article (455) – Federal Decree-Law No. (31) of 2021 applies the same penalty stated in Article (454) to anyone who embezzles or attempts to embezzle a movable that he had pledged as security for a debt owed by him or by another. The same penalty also applies to an owner who is appointed as custodian of his movables that have been judicially or administratively seized, if he embezzles any of them.
Accordingly, the law equates attempt with completion in the pledge scenario, and it holds even the owner criminally liable when he is entrusted as custodian over seized property and then misappropriates it.
Conclusion
Under Federal Decree-Law No. (31) of 2021 Issuing the UAE Crimes and Penalties Law, Article (453) punishes breach of trust where movable property is delivered through deposit, lease, pledge, loan for use, or agency, and the offender embezzles, uses, or dissipates it to the detriment of the right holder, including expanded “agent” situations such as partners and unauthorized managers. Article (454) punishes appropriation with intent to own lost property, or property received by mistake or force majeure with knowledge, by imprisonment up to two years or a fine of not less than AED 20,000. Article (455) applies the same penalty to embezzlement or attempted embezzlement of a pledged movable, and to an owner appointed custodian of seized movables who misappropriates any of them, as stated in Articles (453), (454), and (455) of Federal Decree-Law No. (31) of 2021.
Piter Bowman
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