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Fake Cheque Case? What to Do?

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Fake Cheque Case? What to Do?

Cheques are commonly used all over the world for money dealings. Fake cheques are considered an illegal offense in the UAE. As per Federal law number 3 of 1987 in the UAE Penal Code the dishonored cheques are chosen as a criminal offence. In some cases, if anybody failed to return the cheque or denied, he or she should prove its beneficiary. If any fake criminal case is made when the amount is already paid in cash, the approach is taken by Criminal Court of Cassation under case number 334 of 2002.

Fake Cheque 

When a fake cheque is found out, many legal procedures are to be further happened. Fake cheques can happen knowingly or unknowingly. But still certain procedures will happen once it is caught. They are given below:

  • Signing a cheque and bouncing back due to insufficient bank balance is considered as a criminal offence. This is a form of fraud cheque.
  • Banks might further contact the police for further procedure.
  • The police will contact you and ask to report to the nearest police station for further clarification regarding the check issue. The remaining formalities will be fixed by them.

Punishment

Jail sentence or fine shall be imposed on the person whose check has been bounced. The punishment will be carried out through the court by legal formalities. If the jail sentence is completed and still the money is not paid, they are not released until it is paid back. The person who signs the check is considered as the offender. This can be some nasty trap by the employees of the company. This seems to be some risky route for the people working in the institution who have signing authority.

Federal Cheque Fraud Law UAE

In the Article No: 401 of Penal Code under federal Law No: (3) 1987 states the cheque fraud law. The amendment took place in the year 2005 as Federal law No: 34 by the federal Gazette. The law in 1987 states that:

“Shall be punishable by confinement or fine any individual who, in bad faith draws a cheque which does not have a provision which could be withdrawn or which has a provision less than the amount of the cheque or who, in bad faith, after issuing a cheque, withdraws all or part of the provision and renders the balance insufficient to settle the amount of the cheque or, in bad faith, orders the drawee not to pay the value of the cheque or, in bad faith, draws or signs a cheque in such a manner as to prevent it from being paid.

Shall also be liable to the same punishment any person who shows or delivers to another a cheque payable to bearer, with full knowledge that it does not have a provision which could be withdrawn or which has a provision less than the amount of the cheque.

The criminal case shall terminate if payment was made or assignment was established after commitment of the offence and before a final judgment was passed in respect thereof, and if such occurred after the judgment became final, it would stop execution.

If the cheque book was withdrawn by order of the court and the claimant was prohibited to obtain new cheque books pursuant to article (643) of the Commercial Transaction Law. The public prosecution shall advise the Central Bank of the matter in order to circulate to all Banks.

In case any bank contravened the said order, it has be required to pay (AED 100,000)”.

Conclusion

Fake cheque problems that arise in the UAE is considered as a criminal activity. A person may get into the foul activities without having proper knowledge in the UAE laws. If anybody feels like getting further clarifications on any legal topics, you can get free legal consultation in Dubai and can find lawyer UAE through our suitable service. If you find it difficult to go out and seek help, you can get online legal advice in Dubai by opting us through https://iadvise.live.

iadvise.live rank top among the online legal advice in the UAE. We provide ‘video calling’ and free ‘Ask a Question’ service on our website. Find lawyer UAE based on your requirements. We provide the best platform for customers as well as lawyers. We are ready to help you. Feel comfortable to reach us whenever you need legal support.   

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Eva Iris

Author Since:  October 8, 2020

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