E-Notarization Cheque Legal Notice in UAE 2025

Cheque Legal Notice is a common practice in commercial transactions and the UAE, but when a check bounces, many questions arise about the legal procedures followed. This guide aims to provide a simplified and comprehensive explanation of the legal procedures related to bounced checks in the UAE, with a focus on legal notices.

What is Cheque Legal Notice?

A bounced cheque in the UAE is a payment order issued by a person (the drawer) to the bank where he deposits his money, to pay a certain amount of money to another person (the beneficiary). If the drawer does not have sufficient funds in his account to cover the value of the cheque, the cheque is returned to the beneficiary, at which point the cheque becomes bounced and a legal notice regarding bounced checks is sent.

Read more: Legal Notice in Dubai

New cheque bounce law in UAE 2025

The new amendments to the UAE Cheque Law and the Importance of the Cheque Legal Notice, effective in 2025, aim to transform the handling of returned check cases from a criminal matter to a civil and enforcement procedure. This change enhances confidence in checks as a financial instrument and protects the rights of beneficiaries by expediting the collection process, while reducing the criminal burden on bona fide issuers. The following are the most prominent features of the UAE cheque bounce:

Decriminalization of bounced checks:

The most prominent and important amendment is the abolition of the criminal penalty (imprisonment) for most bounced check cases in the UAE due to insufficient funds.

The prison sentence has been replaced with financial fines and administrative penalties.

Checks have become an enforceable instrument:

• A bounced check is considered a direct enforceable instrument.
• The holder can present it directly to the enforcement judge without the need to file a full lawsuit, which expedites the collection process.

Obligating the bank to pay partial payment:

• The bank is obligated to pay the amount available in the drawer’s (the issuer of the check) account to the beneficiary, even if it is less than the check’s value.
• The beneficiary is given a certificate from the bank showing the remaining amount, which can be used as an enforceable instrument to claim it.

Narrowing the scope of criminalization:

The cases in which it is considered a criminal offense punishable by law have been limited, and include:

• Check forgery.
• Check fraud (such as ordering the bank not to pay without a legitimate reason).
• Withdrawing the entire balance from the account or closing it before issuing or presenting the check for payment.
• Deliberately writing a check in a manner that prevents its payment (such as with a non-compliant signature).

Administrative and financial penalties:

In addition to fines, administrative penalties may include:

• Withdrawing the convicted person’s checkbook.
• Preventing them from obtaining new checkbooks for up to 5 years.
• Suspension of professional or commercial activity.
• Revocation of the license in case of repeated violations.

Statute of Limitations:

• A distinction has been made between the statute of limitations for criminal and civil claims.
• Criminal claims expire three years after the date of the incident.
• Civil claims (to claim the value of a check) expire 15 years after its maturity date.

How to send legal notice for cheque bounce?

Here are the general procedures followed by POA&More to send a Cheque Legal Notice:

Contacting and Submitting Documents:

• Contacting the Company: The first step is to contact POA&More or any other legal services company. You can search for their available contact information (phone number, email, website).
• Explain the Case: You will explain the details of your case, such as the check amount, the reason for the bounce (such as insufficient funds), and the check’s due date.

Submitting the Required Documents:

You will need to provide the basic documents to prove your legal notice for a cheque dishonor, including:

• A copy of the bounced check.
• A notification from the bank explaining the reason for the bounce.
• A copy of your Emirates ID.
• If you represent a company, you will need your trade license and signature authorization card.

Drafting the Cheque Legal Notice:

Professional Drafting: A specialized lawyer will professionally draft the bounced check in Dubai. The notice must include all necessary details, such as:

• Details of the bounced check (number, amount, and date of issue).
• Name and details of the drawer (the person who issued the check).
• A specific demand for payment within a certain period of time.
• An explanation of the legal action that will be taken in the event of non-payment.
• On your behalf: A lawyer will draft the notice on your behalf.

Sending the Check Legal Notice:

Official Methods: The company will send the Cheque Legal Notice to the other party (the check drawer) via official and proven methods, such as:

• Registered mail.
• Authorized legal delivery services.
• Authorized email.
• Proof of Delivery: Sending the notice by these methods provides official proof that the notice has been delivered to the other party.

Follow-up Procedures:

• After Sending: After sending the Cheque Legal Notice, the company will follow up on the matter.
• If the other party pays, the dispute is resolved.
• If payment is not made, the company can move to the next step, which is filing a lawsuit or presenting the check as an enforceable instrument to claim the amount due.

How to clear cheque bounce case in Dubai?

Due to recent amendments to the Dubai bounced check law, bounced check cases in Dubai are no longer considered a crime punishable by imprisonment. Instead, they are now an enforceable document whose value can be claimed directly through the court. The Dubai bounced check law aims to expedite the collection process and reduce check bounce cases in Dubai. The following lines explain the steps for settling a bounced check in Dubai:

• Communicating with the other party: The first step is to attempt to resolve the issue amicably with the person who issued the check. This may simply be an unintentional mistake.
• Opening an enforcement file: If an amicable resolution fails, you can file an enforcement file with the Execution Court. The check is treated as an enforceable court order, and a Cheque Legal Notice is sent.
• Court Procedures: After submitting the paperwork, the execution judge issues an order requiring the drawer (issuer of the check) to pay. If payment is not made, further legal action, such as seizing their funds or assets, may be taken to settle the check.

Resorting to Legal Action:

If all settlement attempts fail, you can file an enforcement action in court. Under the new law, a bounced check is considered an “executive instrument,” allowing its holder to directly approach the enforcement judge in Dubai Courts to open an enforcement file.

How to send legal notice for cheque dishonour?

Here are the basic steps for sending a Cheque Legal Notice and taking the necessary action in the event of a bounced check in the UAE:

1. Obtain a Non-Payment Certificate from the Bank

The first and most essential step is to return to the bank to which you presented the check and request a “Check Bounced Notice” or “Certificate of Non-Payment.” This certificate is official proof from the bank that the check has been bounced due to insufficient funds or other reasons, and is necessary for all subsequent legal proceedings.

2. Send a Check Legal Notice

Although the new law allows for direct enforcement proceedings, sending a Cheque Legal Notice can be a positive first step toward resolving the dispute amicably. You can do this through:

• A Law Firm: You can hire POA&More, a lawyer who specializes in commercial check cases, to prepare and send an official legal notice to the check issuer. This notice specifies the value of the check, its due date, and the grace period for payment before legal action is taken.
• Notary Public: A notary public can also issue a formal legal notice, which is an official document informing the other party of the need to pay the amount.

3. Submitting an Enforcement Request to the Court

If the check amount is not paid after sending the Cheque Legal Notice, or if you wish to initiate proceedings directly, you can go to the competent enforcement court. Under the new law, a bounced check is considered an enforceable instrument. The following steps outline the required procedures:

• Submitting an enforcement request to the enforcement judge.
• Attach the original bounced check and a bank note indicating the reason for the refusal.
• Attach any other supporting documents proving the right.

4. Enforcement Procedures by the Court

Based on your enforcement request, the enforcement judge can take several measures to ensure collection of the amount, including:

• Notifying the drawer (issuer of the check) and giving them a grace period to pay.
• Issuing an order preventing the drawer from traveling.
• Freezing the drawer’s bank accounts.
• Seizing the drawer’s assets (such as vehicles or real estate) to be sold to cover the value of the check.
• If court orders are not complied with, an arrest warrant may be issued.

How to check cheque bounce case status in Dubai?

The following steps explain the steps to verify and file a bounced check case:

Check Validity:

• Make sure the check is issued from an active and valid bank account.
• The reason for the refusal must be legal, such as insufficient funds.
• Verify that the check contains all necessary information (date, signature, amount, beneficiary’s name).

Contacting the Bank:

• After receiving the bounced check, you must immediately notify the drawee bank.
• The bank will provide an official memorandum explaining the reason for the refusal to process the check. This memorandum is necessary for filing any subsequent complaints or claims.
• Some banks may offer a “partial collection” service if there is a partial balance in the account. This service is subject to the beneficiary’s approval.

Contacting the Issuer (Drawer):

• It is recommended to contact the person or entity that issued the check, inform them of the bounced check, and attempt to reach an amicable settlement.
• Settling out of court is often faster and less costly.

Inquiry about the status of cases and circulars:

Dubai Police provides a criminal inquiry service in financial cases, which enables individuals to check the existence of any circulars or financial cases against them.

Hiring a Lawyer:

It is highly recommended to hire a POA&More lawyer, as they specialize in financial cases, to ensure proper legal procedures are followed, especially in complex disputes or cases related to bounced checks involving real estate or companies.

Things to include in a Cheque Legal Notice

Party Details:

• Sender (Beneficiary): Full name, nationality, Emirates ID or passport number, and official approved address.
• Recipient (Drawer): Full name, nationality, Emirates ID or trade license number, and official approved address.

Bounced Check Details:

• Check number.
• Check issue date.
• Check amount (in numbers and letters).
• Name of the bank on which the check is drawn.
• Drawer’s bank account number.

Reason for Bounce:

The specific reason for the bounced check must be stated as stated in the bank notice (e.g., insufficient funds, account closure, mismatched signature, etc.).

Claim Details:

• Explain that the check has bounced and that the amount stated on it is due.
• Demand payment of the full amount due.
• The claim must be specific and precise.

Time Limit:

• Specify a reasonable period of time (usually between 7 and 15 days) for the drawer to settle the amount due.
• This time limit must make clear that failure to pay within this time limit will result in legal action.

Legal Consequences:

• It should be noted that failure to pay within the specified time limit will result in legal action, such as filing a complaint with the Public Prosecution or filing a civil lawsuit.
• It should be made clear that the claim will also include any damages or legal costs incurred.

Supporting Documents:

• The Check Legal Notice must be accompanied by supporting documents, such as:
• The original bounced check.
• The bank’s statement confirming the bounced check and the reason for the bounce.
• Any previous correspondence with the drawer regarding the debt.

Date and Signature:

• Date of issue of the Check Legal Notice.
• Signature of the sender (beneficiary) or their legal representative.

Importance of sending a Cheque Legal Notice

Following recent legal amendments in the UAE, the importance of sending a Cheque Legal Notice (also known as a legal notice) regarding a bounced check has become a priority. Here are the main reasons behind the importance of this procedure:

1. Establishing rights and documenting the situation:

The Cheque Legal Notice is an official document proving that the check holder (beneficiary) has taken the necessary measures to collect their rights. This notice documents the date and content of the claim, strengthening the beneficiary’s position in the event of a court case.

2. Providing an opportunity for an amicable resolution:

The Cheque Legal Notice primarily aims to alert the check drawer (issuer) of a problem with the check’s disbursement and give them an opportunity to settle the outstanding amount before taking any legal action. This may spare both parties the cost and time of litigation.

3. Completing Legal Procedures:

Although the new law makes a bounced check a direct enforceable instrument that the holder can present to the enforcement judge, sending a legal notice remains an important procedural step that demonstrates the seriousness of the claim and shows the court that all amicable avenues have been exhausted.

4. Protection from Criminal Penalties:

Under recent legal amendments, issuing a bounced check has been decriminalized in most cases, turning it into a civil case. However, there are specific instances in which issuing a bounced check still exposes the drawer to criminal penalties, such as:

• Illegal issuance of an order to the bank not to pay the check.
• Closing the account before presenting the check.
• Signing a check to prevent its payment.
• Forging or fraudulently using the check.
• In these cases, a legal notice is a preliminary step to confirming the claim and providing the court with evidence that the check holder has attempted to collect the amount.

5. Activating Enforcement Procedures:

A check is considered an enforceable instrument under UAE law. This means that the holder can directly approach the enforcement judge to enforce his rights. In this context, the Check Legal Notice can be part of a series of procedures to enforce enforcement against the check drawer’s assets if payment is not made.

Repercussions of Bounced Cheques

The UAE has witnessed significant amendments to the Commercial Transactions Law, significantly impacting the consequences of bounced checks. Imprisonment is no longer the default penalty in all cases; instead, there are different civil and criminal consequences depending on the type of violation. Therefore, in the following lines, we explain the consequences of bounced checks in the UAE:

Civil Repercussions

In most cases, particularly those related to insufficient funds, bounced checks are now treated as an immediate “executive instrument,” which expedites the process of collecting claims. The consequences include:

• Imposing financial penalties: A fine of no less than 10% of the check’s value, with a minimum of AED 1,000, is imposed on the drawer (issuer of the check). This fine is doubled in the event of a repeat violation.
• Partial Payment: If there is a partial balance in the drawer’s account, the bank is obligated to pay this amount to the beneficiary unless the beneficiary refuses. The check is stamped with a statement indicating the amount paid.
• Direct Enforcement Procedures: The holder of a bounced check can directly file a request with the enforcement judge, without the need to file a separate lawsuit. The judge will issue an enforcement order authorizing the seizure of the drawer’s accounts and assets to collect the amount.
• Checkbook Withdrawal and Prohibition of New Issuance: The court may order the confiscation of the checkbook from the convicted drawer and prohibit them from obtaining new checkbooks for up to five years.
• Impact on Credit Record: Bounced checks are recorded in the customer’s credit record with banks and the Central Bank, negatively impacting their financial reputation and making it difficult for them to obtain loans or banking facilities in the future.
• Bank Account Closure: Banks may take strict administrative measures, such as closing the current accounts of customers whose checks are repeatedly bounced.

Criminal Implications

Although bounced checks due to insufficient funds have been decriminalized, there are specific cases that are still considered a criminal offense and warrant criminal penalties such as imprisonment. These include:

• Issuing a check with a forged signature.
• Withdrawing the full balance immediately after issuing a check for fraudulent purposes.
• Issuing a check from a closed or frozen account.
• Ordering a check not to be cashed illegally.

Practices to Avoid Bounced Cheques

According to UAE law, there are important practices to follow to avoid the problem of bounced checks, which can lead to financial and legal consequences. Here are the most important practices and tips:

1. Practices related to the financial balance:

• Ensuring sufficient funds: The most common reason for a bounced check is insufficient funds to cover its value. Therefore, you should always ensure that your bank account balance fully covers the check before issuing it.
• Avoid overdrawing the balance: After issuing a check, do not withdraw funds from the account in a way that results in insufficient funds when it is presented for payment.
• Checking partial balance: If there is a partial balance, the bank will be obligated to pay this portion to the beneficiary, but this does not absolve it of responsibility for the remaining amount. Therefore, it is best to avoid this situation.

2. Practices related to check writing:

• Clear and error-free writing: All check details must be written clearly, including the amount in numbers and letters, the due date, and the beneficiary’s name. Any errors or crossings out may result in the check being rejected. Signature Matching: The signature on the check must exactly match the signature approved by the bank. Any discrepancy in the signature may result in its rejection.
• Avoid Pre-Signing: Do not pre-sign checks, as they can be stolen or lost, exposing you to significant risks.
• Keep Checkbooks Safe: Checkbooks should be kept in a safe place to prevent theft or misuse.

3. Legal and Precautionary Practices:

Understanding the New Law: Most cases of bounced checks due to insufficient funds have been decriminalized, with a focus on civil remedies. However, criminalization remains in cases of bad faith, fraud, and forgery. Therefore, the new law should be well understood as follows:

• Do not order the bank to stop payment of a check.
• Do not close your account or intentionally withdraw your funds after the check has been issued.
• Do not sign a check in a way that intentionally prevents it from being paid.
• Negotiate the Problem: If a check you issued has bounced, it is best to contact the beneficiary and negotiate an out-of-court solution, such as partial payment or a repayment plan. This saves you from legal action and further consequences and sending a Cheque Legal Notice.

Why send a legal notice for bounced cheques in Dubai?

• Notification: The legal notice for bounced cheques aims to alert the other party of their financial obligations and the consequences of non-payment.
• Attestation: The notice records the date of your claim, strengthening your legal position in the event of resorting to the courts.
• Avoid escalation: A legal notice for bounced cheques may prompt the other party to settle the matter amicably, saving you the cost of litigation.

Read more: How to Send Legal Notice in Dubai: A Complete Guide

When should you send a legal notice for bounced cheques in Dubai?

• When a cheque bounces: Once a cheque has been returned from the bank, you should take the necessary legal action.
• After unsuccessful attempts: If you have tried to contact the other party directly without success, a legal notice for bounced cheques is the next option.

Check if the conditions for sending a legal notice apply

Bounced checks are a common legal problem in the UAE, specifically in Dubai. When faced with this problem, it is necessary to follow the correct legal procedures to ensure the rights of the beneficiary of the check. Therefore, in the following lines, we explain the conditions for sending legal notice for bounced checks in Dubai:

Drawer notification:

• Official notification: The beneficiary must send an official notification to the drawer (the person who issued the check) informing him of the bounced check and the need to pay the due amount.
• Notification method: Legal notice for bounced checks can be sent by registered mail with acknowledgment of receipt, or by any other means that ensures the notification reaches the drawer and the date of its receipt.

Bank certificate:

• Certificate of insufficient balance: The beneficiary must obtain a certificate from the bank in which the check was presented, proving that there is insufficient balance in the drawer’s account to cover the value of the check.
• Importance of the certificate: This certificate is considered conclusive evidence of the bounced check and is used as evidence in subsequent legal proceedings.

Legal period:

• Specification of the period: The legal period granted to the drawer to pay the due amount varies according to the UAE laws.
• Importance: The beneficiary must wait until the end of the legal period before taking any legal action.

Legal procedures:

• Arbitration: In some cases, arbitration can be resorted to to resolve the dispute over the bounced cheque.
• Judiciary: If arbitration fails or is not resorted to, the beneficiary can file a lawsuit before the competent court to request the execution of the cheque.

Read more: How Much Do Legal Notice Cost in 2025?

Advantages of sending Cheque Legal Notice in Dubai by POA&More

One of the most important advantages of sending Cheque Legal Notice in Dubai through POA&More is that they handle the collection process on your behalf, saving you time and effort. This procedure increases the chances of settling the dispute amicably or taking the necessary legal action in the event of non-payment. Therefore, we explain the following advantages of sending a Cheque Legal Notice in Dubai through POA&More:

• Efficiency and Experience: POA&More has extensive experience handling legal cases related to bounced checks, ensuring that the check legal notice is sent correctly and efficiently in accordance with applicable Dubai laws. This reduces the risk of procedural errors that could lead to the case being dismissed later.
• Legal Representation: The company acts as your legal representative, lending a serious character to the notice and prompting the debtor to respond more quickly. This increases the likelihood of settling the dispute out of court, saving you from lengthy litigation costs.
• Attestation and Verification: The company documents the process of sending the check legal notice, providing strong legal evidence that the debtor has been formally notified. This evidence is essential if the dispute escalates to court. 
• Save time and effort: Instead of having to do the steps yourself, POA&More handles all the necessary procedures, from drafting the legal notice to sending it and following up on responses, allowing you to focus on your other business.
• Access to an amicable solution: The legal notice sent by the company can serve as the first step toward an amicable solution, allowing both parties to negotiate and reach an agreement without resorting to the courts.

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Frequently asked questions

What is the new law for bounced cheque in the UAE?

In the United Arab Emirates, the law on bounced checks has undergone fundamental changes under Federal Decree-Law No. (50) of 2022, which came into effect on January 2, 2022. These changes aim to modernize the legal framework for checks and make it more efficient, focusing on civil aspects rather than criminal penalties.

The new law on bounced checks in the UAE represents a qualitative shift in dealing with these issues, focusing on civil solutions and direct enforcement, rather than criminal penalties. This enhances the efficiency of the legal system and protects the rights of beneficiaries more quickly. However, criminal penalties remain in place for cases of fraud or intentional bad faith.

What is the legal action for a bounced cheque?

Following recent legal amendments in the UAE, the crime of “bounced checks” is no longer punishable by imprisonment in most cases. Instead, penalties focus on financial and enforcement aspects. Here are the legal procedures for bounced checks in the UAE:

• Obtaining a statement from the bank: The check holder (beneficiary) must request a statement from the drawee bank proving the bounced check and the reason for its bounce (such as insufficient funds).
• Mandatory partial payment: According to the new law, the bank is now obligated to pay any available amount in the account, even if it is insufficient to cover the full value of the check.
• Filing a complaint with the police or public prosecution: The check holder files a criminal complaint with the police station or public prosecution.
• Investigation and trial: The competent authorities investigate the complaint. If the crime is proven, the case is referred to the criminal court.
• Criminal penalties: The court imposes a fine on the convicted person of no less than 10% of the check’s value, with a minimum of AED 1,000 and a maximum of the check’s value.

How long does a bounced check stay on your record in the UAE?

In the UAE, there is no specific period for a bounced check to remain on your credit record, as it is handled in accordance with the new check law (Federal Law No. 50 of 2022).

It is worth noting that the negative impact of a bounced check on your credit record in the UAE remains until the situation is fully resolved and all outstanding amounts and fines are paid. This impact may continue for a period of time (up to two to three years) based on the policies of the Union Credit Bureau.