Insights

What happens when a cheque bounces in the UAE

The law changed in 2022. Here is what a bounced cheque means now, for the person who wrote it and the person holding it.

Guide · Debt Collection · Updated 28 October 2026 · 8 min read

In short

Since 2 January 2022, a cheque that bounces because of insufficient funds is no longer a crime in most cases in the UAE. Instead, the holder can recover the money through the civil route, including by presenting the bounced cheque for direct execution, which is faster than an ordinary lawsuit.

Some conduct involving cheques is still criminal, such as issuing a cheque in bad faith, fraud, or forgery. A civil claim on a bounced cheque can still lead to enforcement against accounts and assets, and to a travel ban request.

What changed in 2022

The UAE's commercial transactions rules were amended so that issuing a cheque without sufficient funds is, in most cases, no longer a criminal offence. The aim was to move cheque disputes out of the criminal courts and to give holders a faster civil remedy. A new Commercial Transactions Law, Federal Decree-Law No. 50 of 2022, carries these rules forward.

Partial payment

If the account holds some money but not enough to cover the full cheque, the bank can pay the available amount to the holder, unless the holder refuses, and record the payment on the cheque. The holder can then pursue the balance.

Direct execution: the holder's main remedy

A bounced cheque, with the bank's certificate of non-payment, is treated as an enforceable instrument. That means the holder can apply to the execution judge for enforcement of the unpaid amount without first winning a full lawsuit on the debt. The drawer can raise objections in the execution proceedings, for example that the cheque was a guarantee or was already paid. Once execution proceeds, it can reach bank accounts, salaries, vehicles and property, and can include a request for a travel ban.

Obtain the bank's return certificate for the bounced cheque.
Open an execution file with the competent court, attaching the cheque and certificate.
The court notifies the drawer, who may pay or object.
Execution measures follow if the amount is not paid.

When a cheque is still a criminal matter

Issuing a cheque in bad faith, knowing there are no funds, with intent to defraud.
Withdrawing funds or closing the account after issuing the cheque so that it cannot be paid, in bad faith.
Ordering the bank not to pay without a lawful reason.
Forging or altering a cheque.

These situations can still lead to a police complaint and a criminal case. If you have received a criminal complaint about a cheque, read our criminal page and take advice before giving a statement.

Other consequences for the drawer

Banks also apply their own measures when cheques bounce, such as reporting to the credit bureau and, after repeated returns, restrictions on the account and on future cheque books. A bounced rent cheque can also lead to a claim by the landlord at the Rental Disputes Centre.

Your options

If you are	Usually the best first step
Holding a bounced cheque	Get the bank certificate, send a short demand, then open an execution file if it is not paid
The person who wrote it	Contact the holder quickly with a realistic payment proposal, and get any agreement in writing, including return of the cheque
Facing a criminal complaint	Take advice before speaking to the police, and check whether settlement is available

This guide is general information about UAE law and practice as at the date above, not legal advice for your situation. Procedures and fees change. For advice on your matter, contact us.

FAQ

Questions people ask

In most cases, no, since 2 January 2022. It remains criminal where there is bad faith, fraud, forgery or a deliberate act to stop the cheque being paid.

Yes, potentially. The holder can pursue execution on the cheque, and a travel ban can be requested in civil execution if the legal conditions are met.

The bank can pay what is available and certify the rest as unpaid. The holder can then seek direct execution for the balance through the courts.

Obtain the bank's return certificate and open an execution file with the competent court, attaching the original cheque and certificate. We prepare the file for you.

Security cheques are often presented when a debt is not paid. The drawer may argue in execution that the cheque was security for an obligation that was not due. Each case turns on its documents.