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Reality check on the new bounced cheque law

Updated: Mar 31

The #UAE has modified Federal bounced cheque Law, law No. 18 of 1993. The new law is set to come into play in 2022, intensifying the validity of cheques as a form of secure payment.



The law on bounced #cheques remains passably indifferent where bounced cheques are still considered a criminal offense if it falls under certain parameters. The amended law profiles that the misdemeanours that accounts for a criminal penalty as;

  • Forging of cheques

  • Unlawful use of cheques, by ordering the bank not to pay the amount

  • Pulling out the amount before the date stated on the cheque to hinder payment

  • Intentionally befouling a cheque to block the collection

With this roll out, a bounced cheque can also be used as evidence in the court of law in the UAE where the court will see to the payee shall pay the cheque, have assets seizures, face fines, jail time and will not be permitted to issue a cheque for 5 years along with all commercial and professional ventures halted.

It is important for businesses and individuals alike to familiarize themselves with the new law set for 2022 and issues and cash cheques accordingly.


#bouncedchecks #finance #uae #uaelaw #legal


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