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BSA LAW Secures Acquittal in Landmark UAE Virtual Asset and Money Laundering Case

In a precedent-setting decision, BSA LAW’s Criminal Department obtained a full acquittal for its clients in one of the most prominent virtual asset cases in the UAE. The case began before the Court of First Instance, where the clients were convicted of conducting virtual asset activities without a license, in addition to charges of money laundering. The court imposed both financial and criminal penalties. However, the judgment lacked conclusive evidence to establish the elements of the money laundering offence. BSA LAW appealed the decision, arguing that trading or investing in virtual assets without a license does not constitute money laundering unless the funds involved originate from an illicit source. Despite presenting strong legal arguments, the Court of Appeal upheld the original verdict. The firm then escalated the matter to the Court of Cassation, highlighting both a misapplication of the law and a deficiency in the court’s reasoning. As a result, the Court of Cassation overturned the judgment and referred the case back to the Court of Appeal for reconsideration. During the retrial (Case No. 1000/2024), BSA LAW presented comprehensive legal defences and reassessed the facts from a focused legal perspective. The team relied on the provisions of Federal Law No. 20 of 2018 on Anti-Money Laundering and Combating the Financing of Terrorism, along with the regulations governing virtual assets. On 15 May 2025, the Dubai Criminal Court of Appeal overturned the initial ruling and acquitted the clients of all charges. The decision now stands as an important legal precedent in the field. The court based its ruling on the principle that while trading in virtual assets without a license may constitute a regulatory breach, it does not amount to money laundering unless it is proven that the funds were derived from or used to conceal an unlawful source. This ruling represents a significant legal milestone and contributes to the evolving legal framework for virtual assets in the UAE. It reflects the judiciary’s effort to balance financial innovation with the protection of the financial system. The outcome highlights BSA LAW’s capabilities in handling complex legal challenges related to virtual assets and anti-money laundering. It also reinforces the firm's commitment to protecting client rights and contributing to a progressive legal environment aligned with the UAE’s digital and financial development goals. BSA LAW continues to deliver strategic and effective legal solutions that support the UAE’s vision for innovation and regulatory excellence.
BSA LAW - August 8 2025
Private Client

Tokenisation: Designing wealth structures for a digital future

Private wealth is moving away from traditional formats. As assets shift off paper and into digital form, investors are rethinking how they store and transfer value across borders. Over the past two years, tokenisation has gained ground as a practical way to represent ownership of real assets in units that are easier to divide, safeguard and pass on. Since 2022, the UAE has started rolling out clear regulatory frameworks to support this change. Both DIFC and ADGM now license custody providers for tokenised securities and alternative assets under financial services law, and ADGM’s latest updates have expanded the scope of what custodians can hold and manage under regulated conditions. This article looks at how these developments are shaping long-term wealth planning, and why custody is becoming central to that shift. DIFC and ADGM: Building regulated infrastructure Since 2022, the UAE has started to formalise how digital assets are held and safeguarded. Both DIFC and ADGM now license custodians to hold tokenised equity, structured products and alternative assets like real estate funds and private shares. This has created a clearer path for private wealth to be held securely, passed on and accessed under controlled conditions. Custody tools can be linked to external systems, allowing for transfers, permissions and oversight without losing control. Together, these steps are laying the groundwork for digitised capital markets and a more structured way to manage long-term value. From crypto to capital: Real use cases emerging Tokenisation is starting to show its value in areas well beyond crypto trading. Family offices are using it to bring flexibility to holdings that were once difficult to divide or transfer. That includes income-producing property, closed-end funds and hard assets such as art or collectibles. A tokenised stake in a leased commercial building, for instance, can be sold in smaller units, giving family members access to cash flow without needing to liquidate the full asset. High-value art or vintage cars can be held in digital form, shared among heirs, or sold in portions when needed. Private equity interests, which often tie up capital for years, can now be structured more transparently, with access permissions and tracking built in. This shift makes it easier to involve more people in ownership, manage shared holdings across generations and plan transitions with fewer complications. Tokenised assets that once sat outside formal systems can now be brought under regulated custody with clearer controls over access and transfer. Wealth planning and succession: New tools for control Tokenised assets are adding new flexibility to long-term wealth planning. Ownership can now be placed in private vehicles like SPVs or Foundations, with embedded rules on how those holdings are managed or transferred. These structures help preserve intent, provide continuity and reduce the need for probate. Custody providers can link permissions directly to these vehicles, supporting family agreements, shared access and conditional transfers triggered by events such as death or incapacity. The result is more control with fewer complications, especially for families with multi-jurisdiction estates. Tokenisation doesn’t replace familiar estate tools. It adds clarity and portability to established structures while keeping their legal foundations intact. Practical adoption: How families are starting to use it Some families are already applying these tools in real structures. Instead of maintaining separate setups in each country, they’re using a unified custody framework paired with SPVs, Foundations or DIFC Wills to organise rights and define access. Tokenised assets are being arranged to reflect tax and legal rules across jurisdictions, without needing to rework the structure every time. This simplifies estate planning for families with heirs in multiple countries or where holdings span legal systems. When rules on access are already built in, transitions become quicker, clearer and less dependent on local processes. What once took months of paperwork can now be handled within an agreed framework that works across borders. Banks and custody tech: integration in motion Banks in the UAE are beginning to work more closely with custody tech firms, connecting their systems to platforms built to safeguard tokenised assets. This lets banks offer the same level of security for tokenised property or private securities as they already do for cash or gold. The result is a growing number of bank-backed custody solutions that feel familiar to clients but are powered by third-party tech in the background. Some are using white-label models to get to market faster, while keeping the client experience under their own brand. It is a shift that makes tokenisation feel less like an experiment and more like a service built into the financial system. For investors, it means trusted institutions can now store digital assets to institutional standards, without new processes or platforms to learn. Why this matters to investors These are still early moves, but they’re shaping how private wealth is now being managed in practice. Institutional systems are starting to absorb it, giving tokenised wealth a clearer role in long-term planning. For investors, that means more flexibility in how ownership is recorded, shared or passed on. Structures can reflect family intent, function across borders and stay in place through generational shifts. It’s not a change in what is being owned, but rather how ownership is being organised, and as the tools improve, they’re making long-term control, portability and cross-border access simpler to build into the structure from the start.
Knightsbridge Group - August 8 2025

Car Ownership in the UAE Obligations Under the UAE Law

The UAE traffic laws are governed by Federal Decree Law No. 14 of 2024 on Traffic Regulation (“Law”). This Law lays down extensive provisions regarding the usage of public roads, the proper conduct of drivers of vehicles, requirements when applying for a driver’s license, and other traffic related requirements. Apart from this, the Law governs vehicle ownership, the responsibilities of the owner of a vehicle, and the format in which the ownership may be transferred to another person. How to identify the owner of a vehicle? The owner of a vehicle is the person whose name is on the license of the vehicle. Every vehicle will have an official document issued by the licensing authority, which will contain details about the vehicle, including the ownership of the vehicle, the official insurer of the vehicle, the validity dates of the license, and other relevant information specific to a vehicle. The person whose name is contained in this license will be considered the owner of the vehicle. Transfer of ownership Under the Law, Article 22 talks about transfer of ownership of a vehicle. The law states that if the ownership of a vehicle is to be transferred, either as part of a sale or due to another reason, such transfer must be mandatorily registered with the licensing authority. Liabilities of an owner after transfer of ownership Article 22 further states that the owner of the vehicle will remain liable for the obligations arising from the use of the vehicle until the Vehicle License is registered in the name of the new owner in accordance with the procedures followed by the licensing authority. Therefore, in instances where physical transfer of the vehicle has been carried out and the future owner of the vehicle commits a traffic crime while using the vehicle, the previous owner will continue to be liable for such offenses, unless the transfer of ownership is registered with the competent authority. Obligations of a vehicle owner Obligation to renew vehicle registration Vehicle registration renewal must be carried out annually. Vehicle owners get a grace period of 30 days after their vehicle registration expires every year. If you apply for the renewal after the allotted flexible period, an additional fee will be charged. The following documents are required for vehicle registration renewal: Emirates ID Valid Driving License Renewed Vehicle Insurance Policy Vehicle Registration Card, also known as Mulkiya “Passed Certificate” from an assigned RTA testing facility. Obligation to approve vehicle modifications The vehicle owner must ensure that no substantial modifications are to be made to the vehicle shape, (chassis), body, engine power or color except with the approval of the licensing authority in accordance with the law. The licensing authority will inspect and approve the modifications before the vehicle can be used. Obligation after vehicle recall and re-inspection The licensing authority has the right to recall any vehicle for re-inspection. Furthermore, the traffic control authority may also refer a vehicle for re-inspection, to the licensing authority, if it deems that the vehicle is a risk to traffic safety. In such cases, if an inspection raises problems and shows that the vehicle is not roadworthy, the licensing authority may inform the vehicle owner not to use the vehicle. However, the authority is required to provide a statement of the deficiencies and defects in the vehicle. The vehicle owner may begin to use the vehicle once these deficiencies have been addressed, and the vehicle undergoes a successful re-inspection. The Vehicle Owner has the right to appeal the Inspection result to the licensing authority within (10) ten days, and its decision issued in this regard shall be final Exemption from Vehicle License Renewal Fees As per Article 24, if a vehicle owner does not wish to use the vehicle, he can request to cancel the Vehicle License and handover the license plate as prescribed. Consequently, he will be exempt from the Vehicle License Renewal Fees. Conclusion Vehicle ownership is often seen as an integral requirement in the UAE. However, individuals are often unaware of the responsibilities that arise when owning a vehicle in the UAE. The UAE law not only lays down obligations for car owners, but also imposes fines if these obligations are not met. Therefore, it is extremely important to be aware of these liabilities and fulfil them in accordance with the UAE law. Dr. Hassan Elhais
Awatif Mohammad Shoqi Advocates & Legal Consultancy - August 5 2025

“RECONCILIATION IS BETTER” An Initiative to Simplify Legal Proceedings and Promote Amicable Dispute Resolution.

The Dubai public prosecution has launched an initiative to improve the dispute resolution process in the Emirate. The “Reconciliation is Better” initiative has been introduced in order to promote the resolution of disputes through amicable ways. This initiative provides a straightforward and practical alternative to traditional legal proceedings that can be time consuming and expensive. Furthermore, it promotes agreement and a way forward, promoting a culture of tolerance and social harmony, which are central to Dubai’s leadership vision of a cohesive society. The “Reconciliation is Better” initiative aligns with international best practices, while also being in line with Dubai’s leadership vision of a cohesive society. It also aims to establish a global benchmark for judicial excellence and support the objectives of the Dubai Plan 2030. The initiative allows prosecutors to guide disputing parties towards fair and lawful settlements, reducing the reliance on lengthy legal proceedings. This will also reduce the burden on the courts and conserve resources, significantly reducing legal costs. The principle of reconciliation is not a new concept under UAE Criminal Law. The UAE Penal Code under Federal Law by Decree No. 31 of 2021 Promulgating the Crimes and Penalties Law, allows reconciliation under certain instances. Article 84 of the Law states that in cases involving misdemeanors, theft, fraud, breach of trust, and concealment of objects obtained from these acts, if the victim of the crime is a family member of the offender, the Public Prosecution may stay the execution of imprisonment, provided that the victim waives or reconciles with the convicted offender. Thus, reconciliation is allowed under the UAE penal code in the following instances: In certain crimes where the offender is a family member of the victim, and the victim waives or reconciles with the offender When a person who is in charge of a child, refrains from giving up the child to the person who is entitled to claim him by virtue of a final decision or judgment issued by the judicial authority If a parent or a grandparent abducts a minor child or grandchild, personally or through an intermediary, even without deception or coercion, or refuses to return or deliver the minor child, to the person who is entitled to his custody or care in accordance with a final decision or judgment issued by the judicial authority. If a person refuses to pay alimony/maintenance to his spouse, relative, or legal dependents as ordered by the court, or if a person refuses to pay child support, breastfeeding allowance or residence allowance, provided that he is capable of paying the said amount, and has refrained from paying the amount for a period of three months, after being warned to pay. If a person physically assaults another person, and the assault leads to a disease or the inability to carry on his personal activities for more than twenty days. If a person defames a person through any means of publicity, and the defamation could have led to punishment, public hate or contempt towards the victim. If a person causes slander to another person without attributing a particular incident, through publicity, in a way that it violates the victim’s honour or dignity. If a person causes slander or defamation on the telephone or directly against the victim in the presence of others. If a person uses a car, a motorcycle or any similar vehicle, without the authorization or consent of its owner or the person who is entitled to make use thereof. If a family member commits a theft, fraud, breach of trust, and conceals the objects from the crime. Reconciliation can be a powerful tool in certain criminal cases as it can offer a pathway to accountability, healing, and restoration that may not be possible in the traditional punitive legal approaches. It allows dialogue between the offender and the victim, fostering understanding and agreement. Although it may not be possible in all types of crime, it is certainly useful in small crimes, especially involving family members. The “Reconciliation is better” initiative was launched in April but it is already being applied to cases in Dubai. This reflects the Dubai prosecution’s dedication to establishing a global benchmark for judicial excellence. Dr. Hassan Elhais
Awatif Mohammad Shoqi Advocates & Legal Consultancy - August 5 2025