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New Penalty for Bounced Check in Dubai UAE

penalty for bounced check in dubai

Bouncing a check in Dubai comes with severe consequences outlined in Federal Decree-Law No. 50/2022, which governs Commercial Transactions in the region.

Individuals engaging in fraudulent activities related to checks can face fines, imprisonment, and other penalties.

This article will explore the specifics of the penalty for bounced check in Dubai, shedding light on the
new cheque bounce law in UAE 2023.

Office of Al Mulla. Whatsapp: Click here. Phone: 00971501961291.

Penalty for Bounced Check in Dubai.

Individuals intentionally making false declarations about insufficient funds for honouring check payments may be subject to fines amounting to a percentage of the check value.

The penalty ranges from a minimum of AED 5,000 to double the check value.

If cheque bounce due to insufficient balance in UAE.

Knowingly endorsing or delivering a check with no outstanding balance may result in fines of at least 10% of the check value, with the possibility of doubling for repeat offenses.

Bounced cheque UAE new law.

  • Offenses Leading to Imprisonment (Article 675):
    Instructing dishonor before the drawing date, closing an account intentionally, or signing a check to prohibit its honor can lead to imprisonment for a period of 6 months to 2 years. Recidivism doubles the penalty.
  • Forgery and Fabrication (Article 676):
    Forgery or fabrication of checks, knowingly using forged checks, or dealing with amounts from such checks can result in imprisonment and fines ranging from AED 20,000 to AED 100,000. Importing, manufacturing, or possessing forgery-related tools is also penalized.
  • Terrorism-Related Offenses (Article 677):
    If the offenses under Article 676 are committed for terrorist purposes, the penalty escalates to a life sentence and fines ranging from AED 500,000 to AED 1,000,000.
  • Public Disclosure and Checkbook Withdrawal (Article 678):
    Convictions may lead to the public disclosure of the offender’s details. Additionally, the court may order the withdrawal of the checkbook and impose fines for non-compliance.
  • Confiscation and Commercial Activity Prohibition (Articles 680 and 681):
    Seized articles related to check forgery can be confiscated. The court may also prohibit the convict from engaging in commercial or professional activities for up to 3 years.
  • Corporate Responsibility (Article 683):
    Juristic persons may face fines and license suspension for crimes committed on their behalf. Repeat offenses can lead to license revocation or dissolution.
  • Abatement of Criminal Action (Article 684):
    The criminal action for bounced checks may be dropped if the entire value is paid before forced execution procedures or if conciliation is reached.

FAQs about penalty for bounced check in Dubai.

The fine for a bounced cheque in Dubai is not less than 10% of the cheque value, with a minimum of AED 5,000 and not exceeding double the cheque value, as outlined in Article 673 of Federal Decree-Law No. 50/2022.
As of 2023, the rules for bounced cheques in the UAE remain governed by Federal Decree-Law No. 50/2022. It defines the penalties, fines, and legal procedures for dealing with bounced cheque offenses in the country.

The penalties for bounced checks in Dubai are stringent, reflecting the commitment to maintaining financial integrity.

If facing legal issues related to bounced checks, seeking professional advice is crucial.

Al Mulla Lawyer & Legal Consultant is a reliable option for navigating the complexities of bounced check cases in Dubai, ensuring a fair and just legal representation.

This article provides a guide to the penalties associated with bounced checks in Dubai, providing individuals with a clear understanding of the consequences of financial misconduct.

Contact the office of Al Mulla via Whatsapp. Click here. You can also call us on phone: 00971501961291.

learn about the Best Financial Crime Lawyers in Dubai and the Best Money Laundering Lawyer in Dubai.

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