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Peculiarities of using bank checks in Dubai, UAE

Peculiarities of using bank checks in Dubai, UAE - Makebiz

A bank check is a common means of payment in the United Arab Emirates, which implies payment not immediately, but when presenting the check to the bank or cashing it through special ATMs. A checkbook can be obtained after opening an account with most local banks. 

Checks are actively used by individuals or businesses to pay for goods or services. They are a preferred option for paying for rented property, as they ensure the security of payment and minimize the risks of losing money or theft. 

The main types of checks can be distinguished:

  • settlement (crossed) — used for non-cash payments, i.e. for transferring funds from account to account;
  • registered checks, which are issued to a specific person;
  • bearer, i.e. any person who can transfer the check to another person by simple handing.

Correct filling of the check should include the following fields: a clear inscription “check”, name, exact amount (in words and figures), signature and current date. Accordingly, if necessary, you should also fill in the field about the place of payment. It is important to keep in mind that by signing it with the current date, you must be sure that the funds are already in the account. Therefore, in some cases, writing a postponed date is used, before which the money cannot be withdrawn. 

The use of a checkbook is governed by Section 627 of Federal Law No. 50 of 2022. Therefore, failure to cover the amount of the check presented for payment can have serious consequences in the form of penalties and, in the case of large checks over AED 200,000, up to imprisonment. 

Careful completion of checks can help you avoid a number of mistakes:

1. Discrepancies with the payee’s name on the check and when registering with the bank.

2. Discrepancies in writing the amount of the check in numbers and words.

3. Signature other than the signature registered with the bank at account opening.

4. Blank field with the date of issuance of the check.

5. Corrections on the check (it is worth writing a new check if a mistake is made).

Despite the emergence of new payment methods, checks are still widely used in the UAE, especially for large transactions. Therefore, it is worth studying the rules for using a checkbook and the penalties for violations.

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