If 4 checks are returned within a year

“Central”: Closing the current accounts of bounced check holders... two years

The Central Bank asked the banks to retrieve the remaining checks from the customer.

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The Central Bank circulated to banks the necessity of closing the current accounts of bounced check holders for a period of two years, if four checks were returned to them within a year, and increasing the closing period for a period of three years in case of recurrence.

The Central Bank also asked the banks to retrieve the rest of the checks from the customer.

The Central Bank clarified in its circular No. 2373/2022, of which Emirates Today obtained a copy, that the scope of work of the Central Bank's Banking Risk Center has been modified with regard to bounced checks.

He added that these amendments are specified as follows: Paragraph No. (6) of Circular No. 14/93 and its amendments in Notice No. 223/93 is amended by deleting the following requirement: “The risk center of the Central Bank shall be informed of the name of the closed account holder, and the amount included in each bounced check.”

So that the text of the article after the amendment reads as follows: “In the case of current account holders of persons to whom at least four checks are returned due to insufficient balance, within a maximum period of one year between the first check and the fourth check, in this case their accounts must be closed and the remaining number of checks returned to them. ».

The Central Bank referred to another amendment that stated: “Paragraph (Fourth) of Notice No. 2161/2003 is amended by deleting the following requirement: This will be implemented by including the details of those who are prohibited from opening current accounts in the electronic system at the Central Bank in the Banking Risk Center.” After the amendment, the text of the paragraph would read as follows: “The period for which the current account remains closed increases for the one to whom (4) checks are returned in one year, from one to two years, and upon repetition, the period for which the current account remains closed increases to three years.”

In its circular, the Central Bank stressed, by reminding banks of their obligations under previous notices, the need to search the database at Al-Etihad Company for Credit Information for the customer before issuing a check book.

He continued: “With regard to the data related to the blacklist of the courts, banks must rely on the commercial credit system at the Central Bank’s Banking Risk Center, to implement court orders in this regard, however, to avoid any service interruption, banks can use The current inquiry portal in the system, using the approved login data, to inquire about the blacklist from the courts.

The Central Bank asked the banks to put these amendments into effect immediately.

The meeting of the International Islamic Authority for Liquidity Management

The Board of Directors of the International Islamic Liquidity Management Authority held its 28th meeting in Abu Dhabi yesterday, headed by the Governor of the Central Bank of the Emirates, Chairman of the Board of Directors of the Authority, Khaled Muhammad Balama, in the presence of the governors of central banks and monetary institutions in the member states.

Balama said that the authority seeks to consolidate its position as a leading support center for the international Islamic finance sector, in light of the increasing global interest in Islamic financial services, at a time when we are proud to be an essential part of the infrastructure to support Sharia-compliant options for the global financial services market, and a base Growing for our investors.

He stressed that the authority will continue to provide short-term financial instruments that are compatible with the provisions of Islamic Sharia on a monthly basis in order to implement its tasks, and to embody its goals and future plans.

During the meeting, the Board reviewed the topics on its agenda, as it reviewed the reports of the work of the heads of committees in the authority that cover executive management, auditing, risk management, and compliance with the provisions of Islamic Sharia.

The International Islamic Liquidity Management Authority, which is a global institution established in 2010 by central banks and multilateral monetary and financial institutions, has regularly issued short-term sukuk, with varying periods of varying duration, in different amounts to meet the liquidity needs of institutions providing Islamic financial services.

During the past six months, it also issued short-term sukuk instruments to the market with a total value of $7.23 billion, with a monthly average of more than $1 billion, distributed over 19 series of sukuk, over varying periods ranging from one to six months.

Following the Board meeting, the Authority's General Assembly held its 12th meeting, during which it approved the audit proposals submitted by the Board of Directors.

Abu Dhabi - Emirates today 

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