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UAE: Bank accused of unauthorised transactions after expat dies
The late businessman’s siblings are seeking the recovery of Dh76.9 million, in addition to interest and damages
- PUBLISHED: Thu 8 May 2025, 12:50 PM
A civil case was filed before the Dubai Commercial Court of Inheritance by the heirs of a deceased Canadian businessman against a local bank they alleged of “mishandling and withholding millions of dirhams from the man’s estate.”
“This is in violation of UAE banking regulations and court orders,” said Emirati lawyer Awatif Shoqi, who is representing the late businessman’s brother and two sisters in court.
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In a statement sent to Khaleej Times, Shoqi noted: “The bank was officially notified of the businessman’s death in late October 2020 and had updated his account status to reflect his passing. Despite this, the bank continued to process transactions on his accounts without court approval.”
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The late businessman’s siblings are seeking the recovery of Dh76.9 million, in addition to interest and damages.
The civil case accuses the bank of executing “unauthorised financial transactions on accounts belonging to the Canadian expat after his death in October 2020”. The siblings said when they attempted to recover the estate’s assets, they discovered what they claim are “serious irregularities in the bank’s handling of their brother’s accounts.”
Unauthorised transfers
Shoqi noted “the unauthorised transfers totalled over Dh18.7 million, in addition to cheque withdrawals amounting to nearly Dh3.7 million.
“Those were post-dated checks and transfers. According to UAE Central Bank rules the account has to be frozen after the death of the account holder,” Shoqi told Khaleej Times.
“Additionally, Dh87 million was unjustifiably locked in as bank guarantee for two years, despite no active claims against the estate, resulting in missed investment opportunities,” she added.
Shoqi argued before the court “that the bank renewed fixed-term deposits after the man’s death at below-market interest rates, without court approval or the consent of the deceased businessman’s heirs."
She added: “According to the estate trustee’s report, the deceased had maintained substantial investments during his lifetime in projects and portfolios owned by the bank. These assets would not appear directly under his name unless the bank formally acknowledged them. However, as of now, the bank has not revealed any such information, in breach of established banking regulations and fiduciary obligations,” she added.
Shoqi has requested the court to compel the bank to produce all documents related to the deceased’s accounts, investments, and financial dealings.
She also asked for a detailed audit of the bank’s conduct to determine the full financial impact on the estate. A will was executed but not notarised and it was challenged and got rejected by court, she added.
