Whether you're a business owner receiving cheques from clients or an individual obtaining them from companies or other individuals, the risk of a bounced cheque is prevalent. The UAE has decriminalized bounced cheques since 2022, with the exception of those issued with malicious intent. This legislation allows banks to make partial payments by releasing any available funds in the account unless the account holder objects. Beneficiaries of bounced cheques have the option to file a police report and resolve the issue through mutual agreement or proceed directly to court if needed. Criminal charges can only be filed in cases of fraud.
Certain cases of bounced cheques remain punishable by law, particularly those involving fraud, with fines ranging from Dh20,000 to Dh100,000. For those seeking to resolve the issue through the police, here's how to file a report for bounced cheques. Eligibility for this service is accessible online via the authority's website and includes individuals, government entities, and companies. The incident must have occurred in Dubai, and beneficiaries must visit the police station in the area of the incident. The merit period should not exceed five years, and the reason for the bounced cheque should not be due to the expiry of the merit period.
When filing a report, the Public Prosecution requires specific documents and information, which vary between individuals and companies. For individuals, these include an image of the bounced cheque and a copy of the Emirates ID. Companies need to provide a copy of the bounced cheque, trade licence, and a bank notice about the bounced cheque, along with a complaint letter to the police department in Arabic. Additional documents might be required from legally authorized individuals, including a valid email ID and images of the legal authority and Emirates ID of the cheque recipient.
The process is free of charge. After submitting the form, applicants will receive a transaction number and receipt via email. The process can be conducted through smart channels such as the Dubai Police website, app, or smart police stations.
