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Alqada > blog  > Federal degree law regarding bounced checks in UAE

Federal degree law regarding bounced checks in UAE

The implementation of new law is done by the cabinet in UAE and this rule will come in effect from the starting of 2022.The new law is significant in terms of swift and better way of the check clearance.

The definition of check related offence is revised that cover the frauds like check falsification, misguiding the banks on paying the check amounts, transacting the check amount before the date, deliberate poor signing and drawing the check.

These new laws are meant to highlight those measures to the global platform in which the check authorities can save themselves from criminalization.

What are the conditions in which the check bounces?

  • No balance in bank account
  • Any over written word or alphabet on check or the over written should endure signature of the authority of the check
  • Spelling mistake in name

Police and Tasheel

In UAE there are many cases in which the check victim who was supposed to be benefitted by the check fails then he has to make an approach to the police station of the emirates of which he holds residence visa. In the police station the check authority will be summoned by the police and if the complainant receives the expected amount there in presence of police then the matter will be solved or else will go to the court.

The victim can litigate the accused through fast track court or can go to Tasheel  Service Centre to file his complaint.

Punishments

Those authoritarian who have been criminalized in verdict from court will have to face following punishments

  • The check book would be siege
  • New check book will not be allotted for next five years
  • In some cases even the professional activity or company license also can be suspended permanently
  • The provision of the penalties are also going to be taken into concern

Joint Account

In case of joint account holders if any of them is deceased or went mentally disabled then it is mandatory for the other counterparts to inform it to the bank within ten days.

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