Whenever you are a businessman ends up receiving cheques from a client or at times someone who is just collecting cheques from companies or individuals, coming across a bounced cheque, is, I would say a possibility.
The UAE removed bounced cheques as a criminal offense as far back as 2022 but excluded cheques issued maliciously. This law helps the banks to make partial payments by authorizing any amount in the bank account if the holder does not object.
The persons who received the bounced cheque may report the matter to the police and complete the case through settlement or the case may be taken to court if necessary. Criminal cases can be instituted only in circumstances of deceit.
However, few cases of bounced cheques are as yet punishable by law. These can get fines which range between Dh20,000 to Dh100,000 mostly in the case of fraud.
For those interested in taking it to the police here is how individuals can report cases of bounced cheques.
Eligibility
The service can be accessed easily on the internet on the website of the authority. For a report to be filed, the beneficiaries must meet the following conditions:
- Individuals (citizens, those from GCC countries, residents, visitors), government entities (Local, Federal, Diplomatic) and companies and institutions can apply for this service.
- The cheque case should have taken place in Dubai.
- Recipients must go to the police station in the area of the occurrence.
- The merit period should not surpass five years.
- The reason behind the bounced cheque should not be the expiry of the merit period.
Documents, and information required
When recording a report, the Public Prosecution needs certain documents and information. These vary based on individuals and companies.
Individuals (transaction owner):
- Image of bounced cheque
- Emirates ID copy
- Bank’s notice about the bounced cheque
Companies:
- Copy of bounced cheque
- Copy of trade license
- Bank’s notice about the bounced cheque
- A complaint letter to issue the cheque report from the company regulated to the police department in Arabic.
- A report must be issued by the manager of the company who is mentioned in the trade license or by whoever is authorized legally.
In certain cases, additional documents might be required from those who are authorized legally. These are:
Valid Email ID
- Image of the legal authority along with original documents
- Image of Emirates ID (recipient of the cheque)
While filing the report, it is crucial to add the following information:
- Emirates ID number
- Bounced cheque number
- The amount mentioned on the cheque
- The merit period of the cheque
- The recipient’s name
- The amount mentioned on the bounced cheque
- Process details
- The process is free of cost.
After putting forward the form, applicants will receive a transaction number and receipt through their email.
Applicants can carry out the procedure through the following smart channels:
- Dubai Police website
- Dubai Police app
- Smart police stations