The amendments will introduce a number of helpful fines, including canceling checks for detainees and preventing them from acquiring new ones.
The UAE Cabinet, led by His Excellency Sheikh Mohammed bin Rashid Al Maktoum, Deputy President and Prime Minister of the UAE and Governor of Dubai, on Monday approved the issuance of a provincial law to amend several provisions of the Federal Law On Commercial Transactions.
The amendments include modifying certain provisions which include forged checks and the issuance of checks free of charge, by providing faster, more advanced and public ways to collect the required payments.
According to the decision, which will take effect in 2022, cases include re-defined checks.
The amendments will also create a number of mechanisms that will ensure the collection of payments by check in a simpler and faster way, such as forcing banks to pay less after deducting the amount of money available to the beneficiary, and making return checks the official docket.
They also aim to highlight ways to avoid criminal prosecution and to simplify related processes, by promoting reconciliation and calling for the payment of a real check amount as a key element in reducing crime.
The amendments will introduce a number of helpful fines, including canceling checks for detainees and preventing them from obtaining new ones for a period of five years, as well as suspending their professional or commercial activities. Additional legal fines will be introduced, which restrict banks and financial institutions, including fines, suspension of economic activity licenses for six months, and the revocation or revocation of licenses for law enforcement officials.
In addition to amendments related to broken checks and non-value checks, the amendments also include the opening of joint accounts between two or more persons. If one of the owners of the joint account dies or fails to comply with the law, the other account holders must notify the bank within 10 days from the date of death or disapproval, and the bank must, from the date of notification, limit the ability to withdraw the joint account within the group’s share of account balance on the date of death or loss of eligibility.
This provision will be effective from the day following the date of publication of the official gazette.