New rules have been introduced recently related to cheque bounce
in the UAE, which include de-criminalization of bounced cheque due
to insufficient funds.
The new provisions have been introduced through an amendment to
the Commercial Transactions Law of the UAE, called the Federal Law
No. 18 of 1993 and the erstwhile Penal Code of the country.
The amendment is called the Federal Decree Law No. 14 of 2020
and introduced a flurry of new changes.
The key changes have been set out below.
Criminal Penalties Restricted
In accordance with the amended Commercial Transactions Law,
criminal sanctions may still be imposed in some certain specified
actions related to cheque. However, apart from the above, there
will not be any criminal liabilities for cheque bounce matters.
