Legal Knowledge & Articles
What differentiates between two people is how well they are all aware, and with us you will find from the legal sciences beyond your ambitions
Banking And Finance
Money and banking issues
Economic activity throughout history has gone through several fundamental stages, the first of which was the stage of self-sufficiency, where the family or tribe produced what it consumed, then man developed into the stage of mutual economy or known as barter, where excess products are exchanged for consumption to satisfy greater needs or obtain services that he cannot implement himself, and finally economic activity gradually turned into the stage of, With the economic growth and the growing volume of wealth and money, as the products were growing in the era of barter, with it came the urgent need for institutions and companies to manage these operations on behalf of individuals or owners of money and wealth, whether by exchanging them for goods or services (buying and selling operations ) or other forms of trading or saving and investing them, hence banks emerged as one of the most important economic institutions in the UAE and the whole world in terms of their vital role in supporting and promoting economic growth and providing banking services as a whole to individuals, institutions and companies, and therefore there was an urgent need for legal regulation of the work of these institutions and companies, And the organization of its operations and their relationship with each other and their relationship with governments and individuals and other institutions, because of its impact if it is not well managed or regulated to have negative or disastrous effects on the national economy or the individual economy, and also to ensure the smooth functioning of banking operations without disruption or corruption, the UAE legislator has paid great attention to regulating this type of business and activities, with the help of legal experts, and Banking And Finance legal advisor in Abu Dhabi UAE , he is considered a strong fortress to ensure the proper application of legal systems and defend the rights and interests of individuals and institutions dealing with banks and financial institutions or between banks each other.
The importance of a specialized lawyer is highlighted, as banks, by the nature of their rapid and continuous activity, face legal and regulatory challenges in terms of their adaptation to local legislation or international treaties regulating the work of banks and multinational financial institutions. therefore, banks must use specialized lawyers. a specialized lawyer provides many important legal services, such as providing legal advice, judicial representation, dispute resolution and negotiation between clients and banks. lawyers specializing in banking cases work to follow all laws and regulations related to banks and financial services to ensure compliance by clients and banks.
The UAE legislator has regulated banking operations in federal law No. 18 of 1993 in the third book entitled banking operations , amended by Law No. 50 of 2022 and in force from the first of January of 2023 , as well as some laws related to banking and banking institutions, such as Law No. 18 of 1981 on the organization of commercial agencies, Law No. 5 of 1985 on Civil Transactions, Law No. 17 of 2004 on combating commercial concealment, and many other laws related to the activities of banks and their operation in particular, the Penal Code, given the great importance of banks in the local and global economic life , Whether at the level of individuals, companies and institutions, even governments are represented in central banks and their supervisory and regulatory authorities, which will be difficult to address all aspects and elements of their organization, supervision and control.
Since banking institutions are considered the focus of the economic process in any society as they constitute a repository of its savings and an intermediary in financing and investment operations, no economy can develop without them, but these institutions and the specificity of their activity are constantly exposed to multiple cases of fraud and piracy for their various activities, which posed a continuous challenge to them working to develop means and techniques to prevent and address its effects.
With the expansion of the use of electronic technologies by banking institutions in providing their services to their customers, this was accompanied by an increase in fraud cases related to electronic banking and Information Security, which prompted the international bodies concerned with banking to increase attention to the development of procedures and instructions including means and ways to face the risks of bank fraud in all its forms and protect banking institutions from the risk of.
Hence, there is an urgent need for the presence of lawyers specializing in banking issues in the UAE with great experience in the field of financial and banking law, and an accurate knowledge of the laws and regulations related to banks and financial services, which helps them provide the necessary legal advice to clients and banks and ensure that they receive the necessary legal protection, and this is what we provide in our company the black robe for legal consultancy and debt collection.
Where the specialized lawyer faces many photos of cases related to banking, which we discuss here some of these photos to identify them and their most prominent features
First: bank fraud cases:
This picture of cases is considered one of the common issues that a specialized lawyer addresses due to the amazing development in the means of exchanging data, information and technology in general, which includes several forms of bank fraud, considering that financial fraud does not distinguish between a natural person and a legal person. Financial fraud is defined as any practice that involves the use of deception to obtain directly or indirectly some form of financial benefit for the perpetrator of the crime, or facilitate it for others to lead to some form of loss for the party who was subjected to fraud
Fraud does not have to be limited to monetary and material benefits. The definition of fraud in the references is “deliberate distortion of the truth to entice someone to give up something of value or a legal right”. This definition includes financial gain along with other benefits such as the right to access or obtain information that can be gained by deception or any other dishonest behavior, and whether the loss is material or related to something intangible, such as literary property rights, fraud often involves the loss of a natural or legal person.
The types of enterprise-level banking fraud can be grouped into several examples of enterprise-level banking fraud, among which are, but are not limited to:
1-embezzlement of cash and other valuable assets.
2-falsification or misrepresentation of documents including employment applications, invoices, checks, certificates of eligibility or qualification, identity documents, ATM cards or credit cards.
3-forgery of signatures and seals.
4 – counterfeiting banknotes.
5-change one or all the corners of the components of the check.
6-entering incorrect instructions and data through the computer.
7-misuse of information and leaking it in illegal ways.
8-transfer funds to fictitious customers, employees or sellers.
9-accepting bribes, gifts or secret commissions to grant a contract or loan, ignoring the actions taken and cases of non-compliance, or as a motive to provide benefits, including access to confidential information.
- fraudulently obtaining benefits or documents that the recipient is not entitled to receive.
Types of financial fraud at the individual level:
1-impersonating a bank employee, requesting updating bank data and personal information by phone.
2-announcements on the repayment of debts and grants of financing for projects issued by non-regulated entities and individuals who are not authorized to practice banking business in accordance with the banking supervision system.
3-shopping through suspicious, fraudulent and information insecure websites.
4-anonymous requests to pay bills and service fees from the bank account.
5-text and electronic messages claiming to win prizes in kind or cash.
6-voyeurism, theft and misuse of bank information, especially bank and credit card information.
7-fake job and employment offers at banks and financial institutions.
8-offers of cars and luxury assets at cheap prices and much less than their real value.
Second: tax issues and fines:
Banks incur a lot of fees and taxes, which requires a thorough understanding of tax legislation, auditing accounts and examining the reasons for signing fines.
Third: criminal cases:
As some banks may face serious issues, such as the issue of terrorist financing and money laundering cases, expert and specialized lawyers must represent them.
The UAE is one of the most important financial centers in the world and includes many major banks operating in the banking and financial sector. These banks follow the strict legislation and regulations that have been established by the official authorities in the UAE, so when looking for a Banking And Finance legal advisor Abu Dhabi UAE, you should pay attention to several important factors and elements that must be available in a lawyer or a company that provides legal services such as our company
1-the lawyer’s experience in banking and financial services cases and the extent of his understanding of the laws and regulations related to these services, as well as the extent of his experience in understanding and familiarity with accounting and banking controls and standards, and this is what our company provides, as it has lawyers who are fully familiar with the basics of Banking Accounting, Financial Statements and controls.
2-attention to the fact that the lawyer is able to deal with bank cases and succeed in resolving disputes in a proper way and helping clients obtain the necessary legal rights or settle them properly, moreover, the lawyer must have the necessary skills to negotiate between clients and banks in case of disputes and solve problems in a satisfactory way for all parties.
Business Formation legal advisor in Abu Dhabi UAE
Summary of private joint stock companies
According to the federal Companies Law No. 32 of 2021
* Definition :
– A private Joint Stock Company is a company in which the number of shareholders is not less than two and not more than two hundred shareholders and its capital is divided into shares of equal value, and its value is paid in full without offering any of them in a public subscription, but the subscription should be with the full capital, and the shareholder is not asked only to the extent of what he owns shares, and a legal person (companies) may establish and own a private Joint Stock Company and own all of its shares, and the owner of the company’s capital is not asked only to the extent of the capital of a private Joint Stock Company recorded in the memorandum of association, and its shares are owned closely by a few individuals it is not possible to sell shares without the consent of all shareholders and the security of the stock register designated by the Securities Commission Finance and commodities
– On the contrary, for public shareholding companies, where the number of founders is required to be at least 5 people, public companies can also raise funds in the capital markets, thereby submitting an IPO prospectus for inspection purposes to the public( IPO ) .
* Company Capital :
– The capital of the company may not be less than 5 million dirhams, and it must be paid in full, and the maximum capital of the company may be amended by a decision of the Council of ministers at the suggestion of the minister of economy .
– As for the capital of the public shareholding company not less than AED 30 million, the responsibility of each partner is as much as his contribution to the capital. the founders must subscribe with shares not less than (30%) and not more than (70%) of the company’s capital. the number of board members must not be less than three and not more than eleven members.
* Establishment procedures :
1-founders Committee: the founders of the Company shall select a committee of at least 2 of them, and it shall handle the procedures of establishing the company and registering it with the competent authorities (Ministry of Economy – Department of Economic Development – Securities and Commodities Authority), and it shall be fully responsible to the authorities for the accuracy, correctness and completion of the data and documents submitted to the above bodies, and the founders committee may delegate one of its members or others in completing the establishment procedures .
2-the way to submit the incorporation application to the competent authority :
– An application for incorporation shall be submitted, accompanied by the memorandum of association, the articles of association, the economic feasibility of the project and the schedule for its implementation .
– The application is considered within 10 working days from the date of its submission and is decided by approval or rejection, and in case the competent authority does not respond within the above-mentioned period, it is considered as a rejection of the incorporation application .
– The decision to reject the incorporation application may be appealed to the competent court within 30 days of the rejection decision or from the lapse of the period referred to in the previous clause.
3-in case of approval of the application for incorporation from the Competent Authority, the application for incorporation shall be submitted to the Ministry of economy:
– The application for incorporation shall be submitted to the ministry accompanied by the preliminary approval from the Competent Authority referred to in the previous clause, the memorandum of association and all the documents submitted by the founders before the competent authority.
– The application for incorporation is considered within 10 working days, and in case there are shortcomings or the need to complete documents, the founders must complete them during this period, otherwise it is considered a waiver of the application for incorporation .
– In case the ministry approves the establishment application, the documents will be sent to the competent authority within 5 working days, and then the Competent Authority will issue a decision to grant the license after the approval of the ministry .
* Business Formation legal advisor in Abu Dhabi UAE advises that the company must have a register in which the names of shareholders, the number of shares and any actions that occur, and submit to the competent authority to regulate the Register of shares of private shareholding companies (the secretariat of the Register of shares), for example (one-person Dubai Depository Company, First Abu Dhabi Bank, Abu Dhabi Commercial Bank, Finance House, Abu Dhabi Securities Exchange )
* Issuance of the company’s certificate of incorporation : its fees are AED 5000 to be paid via the electronic dirham on the Ministry of Economy website
– The representative of the company submits an application to the ministry to issue a certificate of incorporation attached to it :
1-a bank certificate confirming the company’s capital deposit
2-memorandum of association
3-a copy of the initial approval decision from the Competent Authority of the establishment
4-a statement of the names of the members of the company’s Board of directors, and a written acknowledgement that their membership does not contradict the provisions of the law .
5-A certificate stating that the Register of shareholders has been handed over to the Securities and Commodities Authority (SCA)
6-any other documents requested by the ministry
– If all the documents are completed, the ministry will issue the license certificate within two working days
* Issuance of commercial license :
– After issuing the certificate of incorporation, the board of directors must take measures to register the company with the competent authority within 5 days from the date of issuing the certificate of incorporation
– The competent authority issues the commercial license within 3 working days after completing the required documents
– The ownership of shares may not be transferred before the publication of the budget for at least a fiscal year , but during this period it is permissible to mortgage or transfer ownership from one shareholder to another or from the heirs of one shareholder to others under a judicial ruling
– Any assignment of shares may not be recorded except through the secretariat of the Register of shares , and it may reject the request for assignment , in the case of :
1 – if the shares are mortgaged or reserved
2-if the company has a debt on the shares, it is not permissible to assign until after the debt is satisfied
3-if one of the contractors is incompetent or months bankrupt or insolvent .
Bank loan – Bounced Cheque Cases legal advisor in Abu Dhabi UAE
It is no secret to any of us : the extent of the confusion that befalls us when we try to make a decision in our financial affairs, especially in our time, or even when dealing with financial documents, we feel confused and stressed, and be careful before making a decision because the consequences of making any wrong decision in this particular area may cost the owner huge losses.
– Therefore, it is very necessary to have a financial culture that makes its owner knowledgeable and enables him to manage money effectively, and therefore makes him able to make more accurate decisions, and be based on a solid foundation of financial culture and knowledge. This article will show you some of the disadvantages of loans and bank guarantees and what you will be exposed to legally if you have to take out a loan to use a bank guarantee.
– Definition of a loan: paying money like me to pay back his allowance, the main purpose of which is to help the borrower to benefit from the money and return the same or its value, and it may not be for the purpose of profit and return more than the same >
– Also, our Islamic law and our true religion have permitted the ruling of the loan and the borrower, as it is a matter of volunteering, charity and discharge from Muslims, and Allah has said in a court of download -: (whoever lends Allah a good loan, he multiplies it for him many times, and Allah catches and simplifies and to him you return), and it was reported from Abu Hurayrah – may Allah be pleased with him-that he said: (a king by a door of heaven calls : whoever lends today is rewarded tomorrow, and if a king by another door, he says : give a back spender and hurry to catch damage) .
– Types of loans :
1-the loan is secured by an additional guarantee .
2-loan without collateral .
3-guarantor loan .
- closed and open end loan .
- personal loans .
- debt consolidation loans .
- car loans .
8 .small business loan.
9-mortgage origination loan .
- fixed interest rate loan .
- variable interest rate loan .
12-education loans
13-marriage loans
– Definition of bank guarantees: a bank guarantee is a guarantee for contracts between two external parties such as the buyer and the seller, or it concerns the guarantee for the applicant for the guarantee and the seller. The bank guarantee acts as a risk management tool for the seller, as the bank is responsible for completing the contract in the event of the buyer’s inability to pay its debts or obligations. The bank guarantee serves small companies by providing credibility to those companies through the bank’s approval of the creditworthiness of those companies that are in the role of the buyer, and thus the Bank participates in signing the contract concluded on behalf of the buyer.
– In the case of a bank guarantee, the main debtor is the buyer or the applicant, and when the applicant is unable to fulfill part of his obligations, the bank guarantee will not enter into the process immediately, and the beneficiary will need to claim his rights first from the applicant. Unlike in letters of credit, the beneficiary’s claim is addressed first to the bank.
– Disadvantages of bank guarantees: it is possible that the participation of a bank in the transaction will weaken the process and add an unnecessary layer of complexity and bureaucracy, and when it comes to high-value movements or involving special risks, the bank itself may need a guarantee on the part of the applicant in the form of a special guarantee.
– Many of us are being sued and sued because of his inability to pay the installments of these loans, and even more so those who are being held against executive files on these loans and even issued executive procedures and circulars such as arrest, subpoena and seizure of accounts, cars, real estate and all his transactions
If you are one of these and executive circulars and procedures have been issued against you and you don’t know what to do, you have the solution, as we at the black robe for legal consultancy and debt collection company specialize in the work of Bank loan – Bounced Cheque Cases lawyer in Dubai Abu Dhabi UAE.
– Whereas, based on the article 2 of the Federal Decree No. 23 for a year 2022 on the organization of financial institutions and systems, according to which a new article was added with the number 212 BIS (credit facility guarantees), which was that :
That all banks must take sufficient guarantees for all types of facilities and loans provided to customers from natural persons and individual institutions so that they correspond to the client’s income or guarantee, if any, and the size of the facilities required.
– And not only that,,, but any request, lawsuit or payment before judicial authorities or arbitral tribunals will not be accepted if raised from banks regarding credit facilities and loans provided to an individual person or institution in the absence of guarantees, and then only the guarantees provided during the contract between the parties to the dispute are implemented
– Thus, the borrower (the executor against him) who has the right to circulars and executive actions by submitting an application to the execution department with an independent request explaining what guarantees are on credit facilities for execution exclusively without taking any executive actions against the client