Chequebook in the UAE

Alongside with the usual methods of payment, chequebooks are quite popular in the United Arab Emirates. For local residents they are the very common attribute similar to a wallet.

Cheques are easily accepted in public institutions, shops and private companies. Besides, many Arab banks provide the opportunity to cash cheques via online banking without the need to go to the main office.

Chequebooks are especially popular among business persons. The process of payment by cheque is convenient and easy: it is sufficient to simply indicate the amount and the purpose of payment on a specific cheque form. You need neither Internet nor other additional devices.

Features of bank cheques in the United Arab Emirates

Both natural persons and onshore companies can get a chequebook. The main requirement is that the natural person must possess the UAE residence visa. In the case of getting a corporate chequebook, the owner of the company must be the resident of the UAE.

A criminal accountability for drawing fake or unsecured cheques was introduced to fight fraud. A cheque is considered to be unsecured if there is not enough money in the bank account at the time of its presentation. The usage of such cheques is considered as fraught with a heavy fine or an imprisonment of six months to three years.

The UAE law does not provide for the presumption of innocence in the cheque related fraud cases, and the person is considered guilty until proven otherwise. Owing to such strictness, a chequebook in the United Arab Emirates is considered a reliable and safe method of payment.

Follow these rules to avoid potential difficulties:

• Make sure that you fill all the fields. Never sign a cheque without date or with empty fields — such actions are considered illegal in the UAE;
• Make sure that the current account balance is sufficient to pay the amount that is specified in the cheque. Do not sign a cheque if you doubt that there will be a necessary amount of money on the account by the time of its presenting;
• Keep a record of the number of issued cheques, their amounts and dates. Avoid withdrawing money from an account, if there are any unsettled cheques;
• If, after drawing a cheque, you find out that there is not enough amount on your account, contact the payee and negotiate about with him about changing the date of payment;
• If you get a cheque, make sure that the signature in the chequebook is valid.

Please contact us if you want to obtain this method of payment. We will help you to choose the right bank, to open an account in the UAE and to get a chequebook.