UAE: Commercial Transactions Law Amendments to be Implemented From January 2022

UAE: Commercial Transactions Law Amendments to be Implemented From January 2022 News developments

UAE: Commercial Transactions Law Amendments to be Implemented From January 2022

The UAE’s Central Bank has announced amendments to the Commercial Transactions Law regarding the decriminalisation of cheques and partial payment of cheques will be implemented from 2 January 2022.

Tougher administrative penalties for issuing cheques without funds will also be imposed from the same date. Penalties, including withdrawal of a cheque book from the offender, denying them the right to receive new cheque books for up to five years and suspending their professional or commercial activity will be imposed.

The amendments are contained in Federal Decree-Law No. 14/2020.

Under these amendments, the scope for criminalisation of bounced cheques because of insufficient funds has been refined and confined to cases of bad faith and other cheque crimes.

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Marlé Van Sandwyk