The law on bounced cheques has changed fundamentally. Most dishonoured cheques are now enforced directly through the execution court as an executive instrument — while bad-faith conduct remains criminal. We handle both sides of the new regime.
The Commercial Transactions Law (Federal Decree-Law No. 50 of 2022) transformed how the UAE treats dishonoured cheques. A cheque returned for insufficient funds is no longer, by itself, the crime it once was: the cheque is now an executive instrument, meaning the holder can proceed directly to the execution court to enforce payment without first suing on the debt. Partial payment rules also changed — the bank must pay whatever funds are available if the holder requests it, with the cheque remaining enforceable for the balance.
Criminal liability remains, but is now targeted at bad faith: conduct such as withdrawing the funds before the cheque can be presented, closing the account, deliberately writing the cheque in a way that prevents payment, or endorsing a cheque knowing it is not covered — alongside cheque forgery, which is treated severely. In practice this means most cheque matters are now enforcement and asset strategy, while a defined category still carries criminal exposure. We advise holders on the fastest route to recovery, and drawers on managing both the enforcement and any criminal dimension.
Enforcing dishonoured cheques directly through the execution courts as executive instruments, including attachment of assets.
Advising on partial payment, certificates from the bank, and enforcement of the unpaid balance.
Pursuing or defending the criminal cases that remain — bad-faith conduct and cheque forgery.
Negotiating settlements and schedules of payment, documented to protect the enforcing party.
Advising businesses on cheque practices, post-dated cheques, and security cheque risks under the current law.
See also: Financial & White-Collar Crime · Fraud & Breach of Trust Cases.
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