UAE Amends Criminal Sanctions Involving bounced Cheques

The On 26 October 2020, the UAE Cabinet approved a cabinet resolution amending certain provisions of the Federal Law No. 18/1993 promulgating the UAE Commercial Code, ("the Resolution"). The amendments made by the  Resolution, which will come into force by the end of 2022, include modification of rules dealing with dishonoured cheques and the issuance of cheques without value.  

The Resolution includes the following amendments:

(a) provision to the issuers and beneficiaries of dishonoured cheques additional opportunities at reconciliation;

(b) possibility for the beneficiary of a dishonoured cheque to file a direct claim with the execution judge at the execution court to confiscate the assets of the issuer;