It enhances its power, reduces judicial procedures, and guarantees the right of the beneficiary
5 administrative penalties in the amendments to the Commercial Transactions Law for “checks”
The new law amendments enhance the power of the check as an approved tool for fulfillment.
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Lawyer Muhammad Al-Najjar: “The amendments aim to provide alternatives to simplify and speed up the process of collecting bounced checks.”
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The new amendments to the Commercial Transactions Law regarding the decriminalization of the check without balance, and the amendments related to the partial payment of the check, introduced five administrative penalties for issuing the check, appropriate to the nature of the offense committed, and keeping pace with the economic and legislative development witnessed by the state, according to lawyer Muhammad Al-Najjar, who confirmed that the amendments to The new law has achieved very important benefits, most notably enhancing the strength of the check, shortening the judicial procedures for claiming the value of the bounced check, and developing effective alternatives to collecting it.
In detail, Al-Najjar said that the amendments that will enter into force on the second of next January, which are included in the new checks law, aim to provide alternatives to simplify and speed up the process of collecting returned checks, and include the right of the beneficiary to submit a request to the execution judge, in order to obtain the right to execute on funds The source of the check if it is returned without being able to cash it.
The amendments include obligating the bank to partially fulfill the check, after deducting the entire amount available to the beneficiary, and approving the returned checks as an argument, and considering them as an executive document, issued directly by the execution judge to the authority authorized to do so.
Al-Najjar added that the law redefined the cases of criminalization in check transactions, and identified four cases, which are the crimes of check fraud, fraud using checks by giving an order to the bank not to cash the check without right, withdrawing the entire balance before the date of issuance of the check, and intentionality intended to complicate the issuance of the check or deliberately signing it. in a way that prevents its disbursement.
He explained that based on the new law, and in light of its entry into force at the beginning of the 51st year of the union, the Dubai government issued, by the Attorney General’s Office, Circular No. 9 of 2021 regarding the disposal of cases of giving a check in bad faith, and refraining from payment after decriminalizing it, by keeping These cases, and take the necessary measures towards activating the implementation of this law.
He pointed out that the new law introduced a number of accessory penalties, including the prohibition of giving new books for a maximum period of five years, stopping professional and commercial activity, penalties for financial fines and the withdrawal of the license for a period of six months for the legal person, except for banks and financial institutions, and dissolving the legal person when repeating the violation.
Al-Najjar stressed that the amendments included in the new law achieve many benefits, most notably strengthening the strength of the check as an approved tool for fulfilling the financial obligation in commercial transactions, reducing the judicial procedures to civil claims for the value of the bounced check, without the need to file a lawsuit, and developing effective alternatives that ensure speed and simplification of its collection procedures.
regulating economic relations
Lawyer Muhammad Al-Najjar stated that the importance of the new law stands out in that it renews the state's obligations in its role in the World Trade Organization, and contributes to regulating economic relations.
He pointed out that major countries have adopted similar amendments, such as the United States and France, which reflects the UAE legislator keeping pace with every development at the global level, and its keenness to upgrade banking laws and regulations, fill legal gaps, as well as facilitate commercial and banking transactions, and organize them in a more flexible way.
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