The Crime of Breach of Trust
What is the crime of breach of trust in the UAE Penal Code?
The crime of breach of trust is considered one of the financial crimes under Article 453 of the UAE Penal Code. It involves the use, embezzlement, or misappropriation of sums of money, movable property, or bonds that belong to another person. This property is entrusted to the perpetrator by the rightful owner, who hands it over voluntarily and knowingly under a contract of trust.
As stipulated in Chapter Three of the Code of Offenses and Penalties, Article 453:
Anyone who embezzles, uses, or squanders sums of money, bonds, or any other movable property to the detriment of the rightful owner, when the property was handed over to them under a contract of trust such as deposit, lease, mortgage, loan for use, or agency, shall be punished by imprisonment or a fine. In the application of this provision, an agent is considered a partner in joint property, a fiduciary in relation to the property of the person concerned, and anyone who receives something to be used for a specific purpose for the benefit of the owner or others.
In this context, we will explain further about this crime, its elements, and the ways to prove it.
First: The Elements of the Crime of Breach of Trust According to the UAE Penal Code
For the crime of breach of trust to be established, and for the perpetrator to be punished, two essential elements must be present: the material element and the moral element, as follows:
1. The Material Element of the Crime of Breach of Trust
This element refers to the criminal act that occurs when the perpetrator uses, embezzles, or misappropriates movable property, sums of money, or bonds belonging to another person who entrusted them.
The fundamental condition for this crime to be characterized as a breach of trust is that the property is placed in the hands of the perpetrator by the victim.
In other words, the crime occurs when the perpetrator transforms their possession of the property, which was entrusted to them, from incomplete possession to full possession, for personal benefit and deprives the original owner of their ownership or use of it.
This is achieved when the victim voluntarily transfers their movable property, documents, or other assets to the perpetrator’s possession under a contract of trust, such as an agency, lease, mortgage, deposit, or loan.
It is also required that the victim suffers material or moral damage as a result of the transfer of the entrusted property to the perpetrator’s full possession, with the perpetrator using it for personal interests and preventing the original owner from using it.
2. The Moral Element of the Crime of Breach of Trust
This element consists of two components: criminal intent (mens rea) and criminal purpose:
• Criminal Intent: The perpetrator is aware that their actions are illegal and punishable by law, yet they proceed to commit them.
• Criminal Purpose: This occurs when the perpetrator consciously intends to commit the criminal act of misappropriating or squandering the property entrusted to them.
Additionally, there is the legal element of this crime, which refers to the assumption that the crime can only be committed by someone who has control over the property through a trust relationship, such as a labour contract, rental agreement, deposit, or mortgage.
Second: How to Prove the Crime of Breach of Trust
When all the elements of the crime are present and interconnected, the victim can prove the breach of trust in court by demonstrating:
• The existence of a contract of trust between the perpetrator and the victim.
• The perpetrator’s criminal intent and purpose, as defined above.
• The refusal to return the entrusted property, or proof that the perpetrator is unable to return it, thus violating the trust.
Legal Consultant:
Ismail Al-Masri
Ahkam Centre Legal Consultancy
If you have any questions or if you have become a victim of the crime of breach of trust, it is important to seek help immediately in order to recover your rights from the perpetrator. Ahkam Centre Legal Consultancy offers a team of highly qualified legal advisors specializing in various areas of law.
Contact us now for an initial consultation.