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Discuss this article (8 Comments)UAE committee to tackle problem of bounced cheques
by This email address is being protected from spam bots, you need Javascript enabled to view it on Sunday, 04 October 2009
DUBAI COURTS: Under UAE law bouncing a cheque is a criminal offence.
A total of 544,196 cheques issued in the UAE bounced because of insufficient funds between January and May this year, according to the Ministry of Justice.
The figure is equivalent to about one in 18 of the 9.75 million cheques issued in the emirates during that time.
According to a report in the National, the federal government has formed a committee to tackle the growing problem of bad cheques.
Under UAE law bouncing a cheque is a criminal offence, which carries a prison sentence, although most instances involving small amounts are settled out of court.
“The federal Government will review the recommendations and will be the final decision-makers on what changes will be applied,” the Minister of Justice, Dr Hadef al Daheri.
“The committee has a free rein to study the issue from all possible angles and pass recommendations whether it concerns legislative amendments or procedural factors,” he told the paper.
Court records show that in Dubai almost 11,000 monetary crimes were recorded last year compared with 8,081 in 2007 and 7,550 in 2006.
The global financial crisis has taken its toll on the region, with some businesses forced out of business because of large debts. Blue Banana owner, Simon Ford, fled the country in June fearing jail after he was unable to repay his firm’s massive debts.
A senior prosecutor, who asked not to be named, told the paper 14,000 bad-cheque files were waiting to be reviewed at one Dubai police station alone.
The new committee includes representatives from the Ministry of Justice, federal police, Central Bank, Ministry of Economy, Ministry of Finance and property-regulating authorities.
READERS' COMMENTS
Disclaimer: The views expressed here by our readers are not necessarily shared by ArabianBusiness.com or its employees.
Committee to Commit
Posted by Meri, Dubai, Dubai on Saturday 10 October 2009 at 06:09 UAE time
Let the committee commit. This problem is a real peg here & ideas about decreasing the load of bounced cheques & unpaid suppliers should be practical. Each issued cheque should have the issuer's name nationality & passport number printed on the cheque.
Posted by Meri, Dubai, Dubai on Saturday 10 October 2009 at 06:09 UAE time
Let the committee commit. This problem is a real peg here & ideas about decreasing the load of bounced cheques & unpaid suppliers should be practical. Each issued cheque should have the issuer's name nationality & passport number printed on the cheque.
hi
Posted by Julie, Dubai, UAE on Monday 5 October 2009 at 12:50 UAE time
I definitely agreed to Ahmed.
Posted by Julie, Dubai, UAE on Monday 5 October 2009 at 12:50 UAE time
I definitely agreed to Ahmed.
bank do have a control
Posted by Muhammad, Pretoria, South Africa on Sunday 4 October 2009 at 19:38 UAE time
Banks do have control on every individual account. They have complete control on one account, by seeing their balances, etc. Like on ATM's, bank do not issue cash without confirming their balance in their account. If you go to banks teller counter also, they do not make transaction, without looking at your account. Its all possible by the bank to control the account of individual. Without using banks, it cannot be reduced and people have all the liberties to make such forgeries as they know they have this loop hole in the system.
Posted by Muhammad, Pretoria, South Africa on Sunday 4 October 2009 at 19:38 UAE time
Banks do have control on every individual account. They have complete control on one account, by seeing their balances, etc. Like on ATM's, bank do not issue cash without confirming their balance in their account. If you go to banks teller counter also, they do not make transaction, without looking at your account. Its all possible by the bank to control the account of individual. Without using banks, it cannot be reduced and people have all the liberties to make such forgeries as they know they have this loop hole in the system.
Purpose for bounced cheque
Posted by Pradeep Naik, UAQ, UAE on Sunday 4 October 2009 at 19:21 UAE time
I am sure not all cheques are bounced due to loss of job or business, there are so many crooks who use & knows the loopholes in the legal systems.
They cna get away with their influnce with some locals & bribes in certain authorities.
Banks do play an critical role by appointing new less experienced staff with heavy target to sell credit cards & open new acounts.
Banks do not have central control on individuals information who do not pay their dues by giving cheques from other banks.
Solution is to hunt those real crooks back from their countries & give them lesson of their life time.
Posted by Pradeep Naik, UAQ, UAE on Sunday 4 October 2009 at 19:21 UAE time
I am sure not all cheques are bounced due to loss of job or business, there are so many crooks who use & knows the loopholes in the legal systems.
They cna get away with their influnce with some locals & bribes in certain authorities.
Banks do play an critical role by appointing new less experienced staff with heavy target to sell credit cards & open new acounts.
Banks do not have central control on individuals information who do not pay their dues by giving cheques from other banks.
Solution is to hunt those real crooks back from their countries & give them lesson of their life time.
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