Bounced cheques in the UAE: "Banks are not in the business of sending people to jail" | ZAWYA MENA Edition:
With many facing financial difficulties in the wake of the COVID-19 pandemic, legal and financial experts have sought to ease the concerns of residents by announcing that UAE courts are now far more lenient when it comes to cases of bounced cheques.
It is one of UAE’s most common financial offences; it was once a feared practice in the Emirates, with those found guilty facing potential lengthy jail terms and/or a fine. However, new insolvency laws put into practice earlier this year mean that courts are now more accommodating and lenient towards those who have found themselves in financial difficulty.
The new law, which was implemented in January, is aimed at supporting those struggling with financial difficulties by helping them reschedule debts and offering the chance to take out new concessional loans.
Barney Almazar, a director at the corporate-commercial department of Gulf Law, told Zawya that while the issuance of bounced cheques remains criminal in nature, the crime is not to be feared as it once was.
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