DUBAI, Dubai Chamber of Commerce and Industry, in cooperation with Davidson & Co., recently organised a webinar which examined amendments made to existing UAE laws related to the decriminalisation of bounced cheques, new collection mechanisms, restrictions and cases, collateral and additional penalties and litigation alternatives for bounced cheque claims.
A total of 638 participants joined the webinar, including business owners, managers and legal professionals.
The session was led by Raymond Kisswany, Partner, Davidson & Co., who advised participants on alternatives between filing civil and criminal procedures, steps to file a bounced cheque case, fines that apply in such situations and liability for cheques issued by commercial entities.
He noted that under the new legal provision, banks will be obliged to make partial payment for a cheque to the beneficiary when a cheque is presented for payment at the bank as long as an account balance is available to even partly satisfy the beneficiary’s claim.
Recently, the UAE Cabinet approved amendments to the provisions of Commercial Transactions Law related to bounced cheques and issuance of cheques without sufficient funds, which is expected to come into force in 2022 as part of the UAE Government’s continuous efforts to develop the legislative environment and legal frameworks.
Jehad Kazim, Vice President of Legal Services at Dubai Chamber, said the amendments to existing laws related to bounced cheques are among the key measures that have been introduced by the government in recent years to improve ease of doing business in the UAE.
“Businesses of all sizes and sectors should be informed of changes to laws that impact them. In the case of bounced cheques, new processes will create more efficient and effective ways for companies to recover payments,” said Kazim, adding that the webinar provided an opportunity for participants to pose their questions and concerns directly to the expert who offered clarity and guidance on such legal matters.
Source: Emirates News Agency