Here’s What Will Happen To Lenders In UAE Who Take Passports As A Loan Guarantee
Did you know that it’s not allowed to detain someone's passport especially if you're a lender?
Some lenders in the UAE practice this, however, the UAE law states that lenders who take creditors’ passports as a loan guarantee attract jail time and harsh penalties.
Detention of another person’s passport is an offense that attracts a jail sentence of up to three years or a fine of up to Dh20,000.
Atty. Barney Almazar explained to The City Vibes that the UAE Ministry of Interior (MOI) issued this decree on December 2002.
“Passport is a personal document that and as the obliges its owner to keep and show when required by the governmental authorities, it is not allowed for any part to detail the passport except by the official parties with a judicial order according to the law.
“Consequently, it will be considered as an illegal action to detail the passport in UAE except by the governmental parties,” Almazar further explained.