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UAE: The Central Bank announces amendments to the handling of checks to be applied from January
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the Central Bank announced that the new amendments to the Commercial Transactions Law regarding the decriminalization of the check without a balance and the amendments related to the “partial fulfillment” of the check, and the tightening of administrative penalties for issuing the check without a balance, will enter into force starting from From January 2, 2022.

A banking source said that presenting the check and returning it to insufficient balance is a prerequisite for applying “partial fulfillment” to it, and it must be with the written consent of the check holder, at his request, and not a procedure from the bank itself.

The source clarified that according to the amendments related to checks, which will enter into force starting from the second of January 2022, the bearer of the check has the right to present it for collection. And then the check holder is contacted and informed of the amount available in the balance, as well as informing him of the possibility of partial collection of the available value. If he agrees, a form must be filled out that includes the request in detail and signed by him.

The source added, that if the check holder does not agree to this procedure, the bank does not have the right to act on its own in any way towards collecting part of the check, but it must stamp the check and return it to its bearer, as a bounced check, and then the latter has the freedom to act, either Waiting until the full amount is available in the account or used as an execution bond against the issuer of the check, in accordance with the legal procedures announced in the amendments.

He added that the returned check can be presented several times for "partial payment" with every amount available in the account drawn on it, until the bearer fulfills his full entitlement.

the Central Bank announced that the new amendments to the Commercial Transactions Law regarding the decriminalization of the check without a balance and the amendments related to the “partial fulfillment” of the check, and the tightening of administrative penalties for issuing the check without a balance, will enter into force starting from From January 2, 2022.

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