Bounced cheques are a common occurrence in the UAE, whether issued by businesses or individuals. In 2022, the UAE decriminalized bounced cheques, except in cases of fraud, allowing banks to make partial payments using available funds in the account. Beneficiaries of bounced cheques can resolve the issue through mutual consent or take it to court if necessary. Criminal cases can only be filed in cases of fraud, with fines ranging from Dh20,000 to Dh100,000.
Individuals looking to resolve bounced cheque cases can file a report with the police. To be eligible, the incident must have taken place in Dubai within the past five years. Citizens, residents, government entities, and companies can apply for this service online. Required documents include an Emirates ID copy, a bank’s notice about the bounced cheque, and in the case of companies, a copy of the trade license.
When filing a report, individuals or companies must provide information such as the Emirates ID number, bounced cheque number, amount mentioned on the cheque, and recipient’s name. The process is free of cost, and applicants will receive a transaction number and receipt via email. The report can be filed through the Dubai Police website, app, or smart police stations.
Additional documents may be required for those who are legally authorized, such as a valid email ID, image of the legal authority along with original documents, and Emirates ID of the recipient. The complaint letter must be issued by the manager of the company mentioned in the trade license or by a legally authorized person. The process must be carried out within the merit period of the cheque, and the reason for the bounced cheque should not be due to expiry of the merit period.
