The Council of Ministers, headed by the Vice President, Prime Minister and Ruler of Dubai, Sheikh Mohammed bin Rashid Al Maktoum, approved the issuance of a federal law decree amending some provisions of the federal law for commercial transactions, as part of the continuous efforts made by the UAE government to continue developing the legislative environment and legal frameworks regulating the commercial and economic sectors In order to establish the country's position as a leading regional and international center for business that embraces major international companies and institutions, and realizing the UAE's vision aimed at developing a future economy based on innovation.
The most important amendments to the law include amending the provision for bounced checks or issuing checks without balance stipulated in the Penal Code, by providing advanced and fast civil mechanisms to collect its value.
In detail, and according to the amendments required by the decree that will be enforced with effect from the beginning of 2022, the criminalization cases related to the check have been redefined and defined to include checks for fraud, and fraud using checks by giving an order to the bank not to cash the check without right, and withdraw the entire balance before the date of issuance of the check. The check was deliberately drawn or signed in a way that would prevent it from being cashed, and according to this amendment, the criminalization currently contained in the Penal Code regarding the check has been abolished, especially with regard to issuing checks without balance, except for the cases mentioned in the Decree-Law.
The amendments also included the provision of a set of mechanisms and alternatives that ensure that the check value is collected in the fastest and simplest way possible, including obligating the bank to partially fulfill the check after deducting the full amount available to the beneficiary, and making the bounced checks an executive document that is executed directly by the execution judge in the court, as well as confirmation. The means of preventing the criminal case and facilitating its procedures, by equating between reconciliation and payment of the check value as a basis for the expiry of the criminal case or the suspension of the execution of the adjudged punishment.
The amendments introduced a number of ancillary penalties, such as withdrawing the check book from the convicted person, preventing him from giving him new books for a maximum period of 5 years, stopping the professional or commercial activity, and penalties for the legal person "except for banks and financial institutions" were also introduced, including a financial fine, and stopping the license to practice the activity for a period of time. 6 months, revoking the license or dissolving the legal person when the violation is repeated.
The amendments shorten the judicial procedures for a civil claim to the value of the check by granting the beneficiary the right to submit a direct request to the execution judge in the court to execute the funds of the source of the check in the event of its return without disbursement, which is in line with the government's strategy aimed at facilitating litigation and expediting the settlement of cases.