UAE court releases jail term for American convicted of money laundering

DUBAI, Aug 10 (Reuters) – A United Arab Emirates court has cleared money laundering charges against U.S. citizenship and civil rights lawyer Asim Ghafoor, who was detained while crossing the border in Dubai last month, But the conviction on money laundering charges was upheld, the justice department and lawyers for Ghafoor said on Wednesday.

The court ordered Ghafoor to pay a Dh5 million ($1.36 million) fine and forfeit Dh18 million from his account. But lawyer Habib Al Mulla told Reuters it dropped three years in prison from an earlier sentence handed down in absentia in May.

Abu Dhabi’s anti-money laundering and tax evasion court also ordered Ghafoor’s deportation, the UAE’s judiciary said in a statement posted on its Twitter account. It confirmed that the sentence had been cancelled and that Gafoor faced a fine and forfeiture of his funds.

The attorney did not say whether Gafoor, who lives in Virginia, has been released. The U.S. embassy in Abu Dhabi did not immediately respond to an emailed request for comment.

Ghafoor, who helped found a human rights group with slain Saudi journalist Jamal Khashoggi, is being held by authorities at Dubai International Airport for his absentee conviction after an investigation the UAE said was launched in 2020 on the basis of a request for assistance from the United States.

The UAE embassy in Washington said Monday that a UAE investigation has determined that Ghafoor evaded taxes and laundered money by conducting international transfers of at least $4.9 million through the UAE banking system.

The trial and detention of US President Joe Biden in absentia on July 14 drew criticism from human rights groups and some members of Congress during his visit to the region.

The U.S. has not confirmed its request for an investigation into the UAE and said Gafoor was not detained at Washington’s request.

Ghafoor’s supporters said he was unaware of the charges, and some U.S. lawmakers suggested the arrest could be political, citing his ties to Khashoggi, who was murdered by Saudi agents in Turkey in 2018.

UAE authorities have been describing the case as one of serious financial crimes. They did not immediately respond to a Reuters request on Tuesday for comment on allegations that Gafoor’s ties to Khashoggi may have been a factor.

Saudi Crown Prince Mohammed bin Salman approved the killing of Khashoggi, U.S. intelligence said. The prince denied involvement. Saudi Arabia and the UAE are close allies.

Ghafoor helped Khashoggi incorporate US-based rights group Democracy for the Arab World Now (DAWN) in 2018 and is a member of its board, according to Ghafoor’s website.

DAWN had called for his immediate release, saying the May conviction was obtained without due process, a criticism that U.S. lawmakers have embraced.

The UAE embassy said Ghafoor had received due process, local legal counsel and regular contact with family and U.S. consular officials since his arrest.

(1 USD = 3.6727 UAE Dirham)

Reporting by Alexander Cornwell; Additional reporting by Lilian Wagdy in Cairo; Editing by Toby Chopra, Peter Graff and Mark Heinrich

Our standard: Thomson Reuters fiduciary principles.