Abu Dhabi Criminal Court has convicted thirteen Indian nationals for money laundering and tax evasion through seven companies owned by them.
The accused were found guilty of engaging in unauthorized credit provision through points of sale (POS), with a total value of AED 510 million.
Four of them have been handed jail sentences ranging from 5 to 10 years, followed by deportation. They have also been ordered to pay fines ranging from AED 5 million to AED 10 million. The companies involved in the unlawful activities have been fined AED 10 million each.
Authorities uncovered that the gang set up their operations within the premises of a travel agency, using it as a base to conduct illegal financial practices. Their unlawful activities gave them huge profits exceeding half a billion dirhams.
The group did money laundering in various ways. They paid their customers in cash and subsequently used their credit cards to perform fake transactions using their companies’ point of sale (POS) systems.
In some cases, they went to the extent of helping customers in settling credit card debts by depositing cash into their accounts, followed by fraudulent POS transactions and the deduction of an interest sum.
Detailed examination of bank transaction reports and financial analysis statements conducted by the Financial Information Unit (FIU) unveiled massive cash inflows and outflows within a short timeframe in the bank accounts associated with the culprits and their companies. Such amounts would have been impossible through their reported legitimate business activities.
