Shireen Kapoor
July 28, 2025
• Mismatched or incorrect signature: Mistakes such as mismatched numbers and words, missing details, or an unsigned check can lead to it being returned by the bank.
• An order to stop the payment: The person who wrote the check may ask their bank to stop the payment before it is cashed. This might happen due to disagreements or other personal reasons.
• Partial Balance: Even if there are some funds in the account, they may not be enough to pay the entire value of the check, especially if other transactions occurred before the check was processed.
In the UAE, the treatment of bounced checks has shifted significantly due to recent legal reforms. Under Federal Decree-Law No. 14 of 2020, most bounced check cases are now handled as civil matters, rather than criminal offenses—unless fraud or intentional misconduct is involved. This marks a move away from criminal prosecution toward financial resolution through the civil courts.
• Partial Payment Certificates: If the account has some funds but not the full amount, the bank may issue a certificate to reflect the partial payment available.
• Civil Claims: The payee (recipient) of the bounced check may file a civil lawsuit to recover the unpaid amount, claim interest, and seek court-enforced remedies.
This shift enhances the efficiency of dispute resolution and aligns with international best practices in commercial transactions.
Penalties for bounced cheques in the UAE vary based on the amount involved and the intent behind the dishonour. Sanctions may include fines, imprisonment, or civil enforcement, depending on the circumstances.
civil claims can lead to court-ordered repayment of the cheque amount, seizure of assets or salary, and potential travel bans until the debt is cleared.
If a check bounces, the issuer may face civil liability. The payee has the legal right to initiate civil proceedings to recover:
• The full value of the bounced check
• Court fees and potential legal costs
• Interest or compensation, as applicable
The court may enforce repayment through:
• Asset seizure
• Salary garnishment
• Travel bans (in some cases)
• Judicial sale of assets, if required
Unlike criminal cases, civil claims focus on financial recovery, not punishment
• Cheques up to AED 200,000: Fines between AED 2,000–10,000; no jail if fine is paid.
• Cheques over AED 200,000: Possible jail (6 months to 2 years) and fines starting at 10% of the cheque value (min AED 5,000); may include a 5-year cheque book ban.
• Fraud or forgery cases: Criminal regardless of amount; fines AED 20,000–100,000 and minimum 1-year imprisonment.
If you’re the beneficiary of a bounced check:
• Request a partial payment certificate from the bank (if partial funds exist).
• File a civil claim through the appropriate court.
• In cases of fraud, consider filing a police complaint to pursue criminal action.
To protect yourself or your business from bounced check-related disputes:
• Ensure Funds Availability: Always maintain sufficient balance in your account when issuing post-dated checks.
• Use Alternatives: Consider using bank guarantees, electronic transfers, or promissory notes where possible.
• Keep Records: Maintain proper documentation of all transactions and correspondence related to issued checks.
• Seek Legal Advice: Consult legal professionals, like The ASK Consultancy, before entering into major financial commitments.
The ASK Consultancy offers expert legal advice in the UAE, specializing in corporate law, residency, citizenship by investment, and real estate. We help clients navigate UAE laws with confidence and compliance. We are also officially registered with DIFC, ensuring adherence to the highest regulatory standards.
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