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Bounced cheques in UAE

The provisions of the Federal Laws are applicable regarding dishonor of cheque in the UAE and therefore the procedure of dealing with dishonor of cheque cases in the courts shall be the same whether in dubai or Abu Dhabi and entire UAE.

The dishonors of cheque cases are - separately or jointly - both criminal and civil in nature. The beneficiary of the cheque.has the right to file a complaint at the police office against The signatory of a dishonored cheque, and the last is liable for criminal prosecution based on that.

Article 401 of Federal Law No. 3 of 1987 on issuance of Penal Code (the "Criminal Law') of UAE states: "Detention or a fine shall be imposed on anyone who, in bad faith, gives a draft (cheque) without a sufficient and drawable balance or who, after giving a cheque, withdraws all or part of the balance, making the balance insufficient for settlement of the cheque, or if he orders a drawee not a cash a cheque or makes or signs the cheque in a manner that prevents it from being cashed.

Whenever a cheque is dishonored by the banker of the beneficiary, the beneficiary of the cheque could be initiate a criminal case by register the complainant in the police office regarding this matter and requesting a travel ban on the person who has signed a dishonored cheque.

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