Bounced Cheques Are Now Subject to Fines18-01-2018
The New Order:
Dubai Public Prosecution has recently launched a new Penal Order system, which comes under Law No. (1) of 2017 (the “New Order”) that will allow minor misdemeanors such as bounced cheques to be dealt with through fines rather than imprisonment or the court system, dependent on the value of the bounced cheque. Under the New Order, any individual who issues a bounced cheque not exceeding AED 200,000/- will be subject to the following fines:
|Value of Bounced Cheque||Fine|
|Not exceeding AED 50,000||AED 2,000|
|Between AED 50,000 and AED 100,000||AED 5,000|
|Between AED100, 000 and AED 200,000||AED 10,000|
It is important to highlight however, that individuals who find themselves in debt may still have a civil case filed against them and may be liable for any interest on any outstanding debts. It is therefore advisable to seek legal advice about the applicability of UAE law to debts and bounced cheques.
How Can We Help?
The Corporate Division Team at TLG would be pleased to address any concerns regarding bounced cheques and/or personal or company debt.
To find out how TLG’s Corporate Division team could assist your specific requirements regarding bounced cheques and/or debts, kindly get in touch.