It supports the competitiveness of the country at the regional and global levels

Officials: "Decriminalize bounced checks" cementing the UAE's appeal for foreign investments

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Officials stated that amending some provisions of the Federal Law on Commercial Transactions, the most important of which is the decriminalization of checks, supports the competitiveness of the UAE at the regional and global levels, and establishes its attractiveness for foreign investments.

In detail, the Minister of Economy and Chairman of the Interim Committee for Coordination and Follow-up of the Implementation of the Flexible Package and the General Plan consisting of 33 initiatives to support the economic sectors, Abdullah bin Touq Al-Marri, said that the approval of the Council of Ministers, headed by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister Ruler of Dubai, the issuance of a decree by a federal law amending some provisions of the Federal Law on Commercial Transactions, constitutes an important milestone in the series of steps taken by the state to develop its economic policies and build a more flexible and sustainable economic model.

He added that the amendments to the law represent one of the first initiatives within the flexible package and the general plan of 33 initiatives to support the economic sectors, and aim to enhance confidence in the business environment, as the most important amendments to the law include decriminalizing checks, by amending the provision of bounced checks, or issuing checks without the received balance. In the penal code, and providing alternatives and advanced and fast civil mechanisms to collect the value of the check.

He added that the national economy is increasingly turning to digital applications, and these amendments encourage the public to use modern technological alternatives to secure rights, such as credit cards, digital currencies, and others.

For his part, the Minister of Justice, Sultan Al-Badi, stated that the decriminalization contained in the penal code regarding the issuance of checks without balance, or the so-called phenomenon of bounced or bounced checks, confirms the state's keenness to improve the legislative and judicial environment, in a way that supports its competitiveness at the regional and global levels. And establishes its attractiveness for foreign investment.

He stressed that the amendments will lead to facilitating litigation procedures, avoiding the accumulation of checks cases before the prosecution offices and courts, and saving the loss of effort and money, whether from the bearer of the check by resorting to the judiciary to obtain the sums owed to him, and the costs of litigation and lawyers ’fees, or from It is the responsibility of the public treasury, whether in terms of relying on the police’s efforts and its budget to address these cases, or the judges ’effort and time in order to adjudicate these cases.

For his part, the Governor of the Central Bank, Abdul Hamid Saeed, said that “the new amendments to the Commercial Transactions Law regarding the abolition of the criminalization of the check without a balance, the criminalization of refraining from partial payment of the check, and the tightening of administrative penalties for issuing the check without balance, which were finally approved by the Council of Ministers, are consistent and consistent With the government's plan and its main strategic initiatives to support the economic sector and build a sustainable national economy in accordance with the best international standards and practices, which contributes to raising international competitiveness indicators in this field, which helps in enhancing confidence in the check, facilitating and organizing commercial and banking transactions, and simplifying procedures for collecting the value of the check and fulfilling Doing it, and making it more flexible.

Law Amendments

The decree of a federal law amending some provisions of the Federal Commercial Transactions Law, which was approved by the Council of Ministers, includes the abolition of the criminalization contained in the Penal Code regarding the check, and the introduction of all proposed amendments to the Commercial Transactions Law to unify the procedures governing the check, and the procedures for collecting it and its penalties in one law. Cases of criminalization in the offenses of fraud and use of checks, and the criminalization of fraud and fraud using checks by giving an order to the bank not to cash the check without any right, or withdrawing the entire balance before the date of issuance of the check, and intentionally writing the check or signing it in a way that prevents it from being cashed.

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