How to use checkbooks in Dubai, UAE

In the United Arab Emirates, checkbooks remain a common payment method despite the growth of cashless payments. You can obtain one at almost any local bank after opening an account. However, improper use of a check can lead to financial losses and penalties, so it is important to understand the nuances of working with this financial instrument. In this article, we will discuss the main types of checks, the rules for filling them out, and the legal aspects governing their use in the UAE.

There are two main types of checks in the Emirates:

Registered (crossed) checks are the safest type. They indicate the name of the recipient, and the bank can only issue funds to them. The presence of two parallel lines on the front of the check (crossing) further ensures that the check cannot be cashed by a third party without proof of identity.
Bearer checks. This type is less secure, as it can be cashed by anyone who presents it. Therefore, the use of such checks is recommended only in cases of high trust in the recipient.

Checks are easily accepted for payment at government agencies, stores, and private companies. In addition, many Arab banks offer the option of cashing them through online banking without having to visit the main office.

Filling out a check correctly is the key to its successful circulation and avoiding trouble.

Pay attention to the following fields:

“Cheque.” Clearly write the word “Cheque” in English. This is a required field.
Name of the recipient. Indicate the full and exact name of the recipient. This is especially important for personal checks. Errors in spelling the name may result in refusal to cash the check.
Amount. Indicate the exact amount of the payment in both numbers and words (in English). Both entries must match. Discrepancies may result in the document being canceled.
Signature. Sign the check with your signature, which must match the signature on file at the bank.
Date. Indicate the current date.

Important: do not leave any blank spaces. Any unfilled fields can be used by fraudsters to change the amount or recipient details.

The use of checkbooks in the UAE is regulated by Article 627 of Federal Law No. 50 of 2022. This law defines the rights and obligations of both the issuer and the recipient of a check. Violation of the provisions of the law may result in administrative and even criminal sanctions, including fines and other measures of liability. In particular, the law regulates the issuance of invalid checks (due to insufficient funds in the account, incorrect filling, etc.), which can lead to serious consequences.

Recommendations:

Keep your checkbook in a safe place.

Check your account balance before withdrawing funds.

Make sure that the recipient is the person to whom you intend to transfer money.

If you have any doubts or difficulties, consult your bank staff.

Proper use of a checkbook in the UAE requires attention and caution. Following all of the above recommendations will help you avoid mistakes and legal consequences and ensure the security of your financial transactions. If you have any questions, it is always best to seek professional help from lawyers or bank specialists.