Will I be sent to jail if my cheque bounces in the UAE?

Keren Bobker assists a reader who is scared to write out cheques due to possible consequences.

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I have been told stories of expats being sent straight to jail in the UAE for bouncing a cheque, even for a small amount. I moved here last year so I am not sure if this is just a story to scare expats or whether it really happens to people, even if it’s mistake they can fix. I am scared to write out any cheques due to these consequences. PA, Sharjah

While not honouring a cheque is a criminal offence according to the UAE Penal Code, you are not automatically jailed and the consequences are dependent on the actions of the person who is owed money. They have the right to file a police report against you and if you do not pay what is owed you can be arrested, fined and then jailed if the courts see fit. Cases are often dropped if the monies are paid in full before the final court ruling.

Keren Bobker is an independent financial adviser with Holborn Assets in Dubai. Contact her at keren@holbornassets.com

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