The new changes will be in force from January 2022 onwards and impose new rules governing commercial cheques in the UAE. One of the significant changes being made concerns the limited scope of criminalization in instances of returned cheques on account of insufficient funds.
In this article, we will be discussing the various types of cheque frauds and also the preventive measures that one can take when facing such issues.
A returned cheque can invite both civil and criminal liabilities on an individual pursuant to the UAE laws. Therefore, it is very important, that UAE residents are well aware of the responsibilities in financial transactions including the potential risks.
We all talk about what is a cheque, what happens when it is dishonoured and how to seek legal redress in the event a cheque is bounced. However, we still feel the lack of importance given to dishonoured cheques issued by mistake or the details added in the cheques were mistakenly added wrong, or such cheques were never supposed to be released for payments.
Just as threatening the title of this article may seem, the consequences of a returned cheque or a bounced cheque can be similar in UAE.
Since a cheque is meant to replace money, people must have trust in it. Therefore the UAE penal law levied a punishment against anyone issuing insufficient funds its due date. Such a crime is known as the bounce cheque crime.
Dr. Hassan Elhais discussed the five points you should know about the Cheque.
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