Monday, June 29, 2009

Cheque Bouncing in Dubai


The UAE legal system considers the cheque instrument of payment as substitute of money, consequently the non-payment of cheque can be pursued not only through civil litigation but also as a crime that makes necessary to inflict criminal punishment under criminal proceeding as per Article Art. 401 of the Federal Penal Code No. 3 of 1987.

The drawer shall be punished with imprisonment that may not be less than 1month and not more than 3years or with fine not less than Dh100 and not exceeding Dh30,000. Moreover, the Civil Court may order in addition the punishment of publishing the extract of the judgment in a daily newspaper, to withdraw the cheque book of the convicted and to ban granting new cheque book for a period to be decided by the court.

Just a quote from an article "Fraud, including bouncing cheques and the non-payment of bills (including hotel bills), is regarded seriously in the UAE and can result in imprisonment and/or a fine. Bail is generally not available to non-residents of the UAE who are arrested for crimes involving fraud."


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