The Kingdom of Bahrain is witnessing a new advancement
within its judiciary and financial sectors. On 13 April 2025, the
Shura Council proposed amendments to Decree Law 7/1987 Issuing the
Law of Commerce (Law of Commerce) regarding the provisions
regulating cheques, pending the approval of the Council of
Ministers and His Majesty King Hamad Bin Isa Al
Khalifa.
The proposed amendments represent a significant milestone in the
financial sector, aiming to streamline cheque processing while
reinforcing protections for cheque bearers and beneficiaries. A key
change introduced by the law is that banks will no longer be
required to reject cheques due to insufficient funds; instead, they
will be obligated to release the available balance in the account.
In this update, we will explore the key changes proposed to the Law
of Commerce.
