Understanding cheque bounce in the UAE 2023: Laws and regulations
What is the new 2023 Cheque Bounce law in UAE – #1 Guider
The UAE offers several methods that you can use to perform payments. Undoubtedly, many people in the country still pay for products and services using a cheque. However, it is essential not to use it without understanding cheque bounce in the UAE.
In this article, you will learn how to handle a bounced cheque in the UAE today. Above all, it involves acquiring knowledge about the bounced cheque law in the UAE and more. So, avoid filing a civil case for a cheque bounce in Dubai by reviewing the following topics:
- What does it mean that your cheque bounces in the UAE?
- Frequently Asked Questions about the UAE bounced cheque law
- Conclusion about bounced cheque cases in the UAE
- Where can you find more information about bounced cheques in the UAE today?
1. What does it mean that your cheque bounces in the UAE?
It is a brand new day in Dubai. You get up, dress adequately, and begin your trip to your civil litigation office. However, you remember a pending payment and decide to perform it using a cheque. But the unthinkable occurs: cheque bounce in the UAE.
Your bounced cheque in the UAE means you committed a criminal offense according to the bounced cheque law in the UAE. After all, your recipient may think that you tried to scam him. Namely, you should not provide a bounced cheque in Dubai to pay for family law services.
On the other hand, you can even face jail time if you involve in a cheque bounce in the UAE. Hence, it is an illegal practice with financially threatening and stringent legal consequences. Ergo, you must check your cheque validity in the UAE each time you want to use it.
In short, you are right to feel scared if you see your signature on bounced cheques in the UAE. Above all, remember that there is a new law regarding cheque bounce in the UAE in 2021. In this sense, we will show you the law’s essential features and more:
1.1 The bounced cheque law in the UAE
Logically, several laws impose regulations throughout the Emirates nowadays. For instance, you can discover that UAE authorities fight ecrime in the country through the new cyber law. Similarly, they handle dishonored cheques through the UAE bounced cheque law.
The bounced cheque law in the UAE was born in 1993 under the name: Commercial Transactions Law. In essence, it regulates every matter that involves issuing cheques. Above all, it is worth mentioning that it defines a cheque as a commercial paper containing a pay order.
Unlike the Anti-Concealment Law in Saudi Arabia, the bounced cheque law in the UAE states that a drawer can use a cheque to issue an order to a bank to pay an amount of money to a payee. However, it does not regulate what a payee can do with it.
In summary, the new law regarding cheque bounce in the UAE in 2021 establishes the legal procedures you must follow in such a case. Furthermore, it also contains definitions regarding cheque validity in the UAE. Our following topic will reveal when a cheque is not valid in Dubai.
1.2 The New Cheque bounce validity in the UAE 2023
Assuredly, a bounced cheque in the UAE means it does not have legal validity. First, we recommend not using it to set up a franchise in the UAE. On the other hand, how can you know what makes a cheque bounce in the UAE today?
In this sense, the new bounced cheque law in the UAE indicates that a bank can reject a cheque under the following circumstances:
- Insufficient funds in the drawer’s bank account at the time he issued the bounced cheque in Dubai.
- The bank receives the drawer’s order of not paying the cheque.
- Closure of the drawer’s bank account. It must happen before offering the cheque for payment.
To sum up, you must read the UAE bounced cheque law to understand what to do if one of these circumstances happens. By all odds, you may think you need financial law services. Nonetheless, you will discover that it is a different procedure from other laws in the UAE.
1.3 Your cheque bounces in the UAE. What happens now?
Cheque bounce in the UAE is a topic that can make you feel angry as a drawer or payee. However, bounced cheques in the UAE are common because of the country’s fast-moving business operations. Therefore, you should learn how to handle them once their cheque validity in the UAE fails.
Above all, a bounced cheque in the UAE in 2021 involves a statement from the drawee bank. In essence, it allows the payee to have evidence for his protest of failure to pay. Thus, banks must follow this guideline as companies comply with article 80 of labor laws in Saudi Arabia.
Moreover, Article 618 of the bounced cheque law in the UAE states that the drawer or the payee must present it within six months from the date of issue. On the contrary, one can go to a Dubai court judgement for cheque bounce within two years.
Finally, remember that every civil case for a bounced cheque in the UAE can terminate with legal action against the drawer. Ergo, avoid criminal charges by making your cheques as your Qatar employment contracts. As a result, the UAE bounced cheque law will not affect you.
2. Frequently Asked Questions about the UAE bounced cheque law
Dealing with a cheque bounce in the UAE may put you in a difficult position with your payment receivers. For example, they could hire labor and employment law services if you use cheques to pay wages in your company. Therefore, you may have concerns about it.
Fortunately, we prepared this topic with answers to frequently asked questions about the UAE bounced cheque law. By all odds, they will not be related to a power of attorney in the UAE. However, they will clarify several doubts regarding bounced cheques in the UAE.
On the other hand, it is worth mentioning that every bounced cheque in Dubai is a specific case for firms and UAE authorities. Hence, feel free to look for additional answers to other questions about this subject. After all, the new bounced cheque law in the UAE covers them all.
Let us reveal the answers to these frequently asked questions about the UAE bounced cheque law:
2.1 How can I file a civil case for a bounced cheque in the UAE?
Undoubtedly, cheque bounce in the UAE is a subject that you can handle without filing a complaint. Nevertheless, there are instances where a payee may want to file a civil case for a bounced cheque in the UAE. So, does it require hiring general civil lawyer services?
In short, no, it does not require them. On the contrary, you can do so by initiating criminal charges against the individuals or companies that issued the cheques. Therefore, your following step is to drive to a police station and submit a police complaint.
As with a complaint in consumer protection Dubai, the police allow you to file it online. As a result, you will comply with Article 401 of the UAE Penal Code of 1987. Namely, your drawer will have severe problems related to cheque bounce in the UAE.
To sum up, a bounced cheque in the UAE is a criminal offense, and you can treat it as such according to the new law regarding cheque bounce in the UAE in 2021. But when can you say that you were the victim of a bounced cheque in Dubai?
2.2 When can I say my cheque belongs to the bounced cheques in the UAE?
In the UAE, you can check if your UAE attestation has an original or fake certification stamp. Above all, it implies assessing if it complies with UAE laws and regulations. Similarly, the UAE bounced cheque law states how you can be a victim of a bounced cheque in the UAE.
Indeed, your cheque may belong to the “cheque bounce in the UAE” category because of one of the following factors:
- Lack of money equal to or greater than the amount of the issued cheque.
- Technical faults: Wrong signatures, incorrect dates, or scrawled text.
- Closure of the drawer’s bank account before issuing the cheque.
- The drawer’s instruction to his bank: Do not cash the cheque.
At this point, you now know why you can be a victim of cheque bounce in the UAE. However, it can be like your failed medical test in the UAE: You do not want it, but it can happen. Therefore, you must learn what to do in the case of a bounced cheque in Dubai.
2.3 What procedure begins with my bounced cheque in the UAE?
Imagine the following scenario: You got the call revealing that the cheque you would cash today bounced. Indeed, the new bounced cheque law in the UAE allows you to take legal action against your drawer. As we stated earlier, it will first require a police complaint.
Once you have it, you can file a civil case for a cheque bounce in Dubai. Consequently, you can begin a Dubai court judgement for cheque bounce to resolve the dispute. Nonetheless, most instances do not reach this point. Instead, they choose to settle through fines.
2.4 How much are the fines related to a bounced cheque in Dubai?
Financially speaking, the UAE authorities can make you pay fines regarding cheque bounce in the UAE. Most importantly, they set the penalty of such fines depending on the amount owed by the drawer. Assuredly, they have nothing to do with Islamic finance.
In essence, UAE authorities may charge you with these fines if you issue a bounced cheque in Dubai:
Amount of the issued chequeFineBelow AED 50,000AED 2,000Between AED 50,000 and AED 100,000AED 5,000Between AED 100,000 and AED 200,000AED 10,000
Finally, remember that these fines, as your Emirates ID status, have a time limit. Therefore, comply with the payment date to avoid more problems related to cheque bounce in the UAE. After all, a payment delay of these fines may bring criminal charges back to the table.
3. Conclusion about bounced cheque cases in the UAE
Fortunately, most bounced cheques in the UAE do not relate to criminal activities. On the contrary, they bounce because of illegal termination or company insolvency. In other words, cheque bounce in the UAE is more of a business issue and not a criminal problem.
In this sense, we recommend avoiding filing a civil case for a bounced cheque in the UAE. Instead, you can settle the dispute peacefully with all parties at the police station. Consequently, you will save money and time without hurting your business.
4. Where can you find more information about bounced cheques in the UAE today?
Unequivocally, you cannot expect all companies and individuals in the UAE to perform financial operations without problems. On the contrary, at least one may encounter specific issues regarding payments. For example, he can become a victim of a common misdemeanor like a cheque bounce in the UAE.
Managing the situation with a bounced cheque in the UAE may be challenging. After all, it involves knowledge of the UAE bounced cheque law you may not have. In this case, you should search for assistance from the best experts in the field: Connect Legal.
Let our services help you deal with your bounced cheques in the UAE today. You can always contact us to discover our expertise in the new bounced cheque law in the UAE. How? You can do so by submitting an email at [email protected].
