UAE: Due to changes in the legislation that take effect on January 2 next year, check bounce cases involving insufficient cash will no longer be criminal charges. Knowingly committing fraud, on the other hand, can result in criminal charges. The UAE sees this as a strategic location. This year, according to Dubai Attorney General Issam Al Humaidan, a large number of cases were settled outside of court.
Penalty for Violation of Law
The consequences for violating the legislation include the withdrawal of the offender’s cheque book, the denial of the right to accept new cheque books for a maximum of five years, and the suspension of employment or commercial activity. The administrative fines for issuing cheques that are not accompanied by cash have also been increased.
The account’s current balance will be debited.
If the amount comparable to the bank’s cheque is not in the account, the amount in the account can be removed, and the remaining amount can be taken to Civil Court.
This law change will modernise banking rules and regulations in the financial industry. Make checks more accessible to the public and encourage them to utilise digital instead of paper cheques.
The UAE wants to strike a compromise between the cheque beneficiary’s or bearer’s need for prompt fulfilment of their rights and the drawer’s wish to have any criminal prosecution brought for non-payment of the cheque dismissed. The UAE Central Bank has announced additional amendments to the Commercial Transaction Act, which will take effect on January 2, 2022.
