New procedures to deter bounced cheques

Individuals and companies convicted in cheque related crimes stated in the Panel Code will face withdrawal of cheque facility for one year or more said Criminal Courts of the Supreme Judiciary Council.

The Criminal Courts of the Supreme Judiciary Council in coordination with Qatar Central Bank have started implementing some procedures aimed at deterring cheque bouncing cases.

In addition, the courts has begun, in coordination with the concerned authorities, to prepare a blacklist of those habitually issue cheques without balance and had faced multiple convictions or failed to pay the cheque due amount, with the aim of raising awareness and to prevent more people from falling victim to these crimes.

The Court of Misdemeanors began to implement the supplementary penalty provided for in Article 604 of Law No. 27 of 2006 of the Trade Law, which says, if the court convicted someone in cheque related crimes stated in the Panel Code, it may order withdrawal of the cheque book from the convicted person, and prevent him from receiving new chequebooks for one year period.

The courts and the Qatar Central Bank will circulate the provisions to the banks, which must withdraw the chequebooks that they have issued to the convicted person and refrain from handing over any new chequebooks for one or several years, depending on the number of cases.

The penalty will apply to individuals and companies convicted by the courts.

The criminal courts will also start re-activating procedures of refunding the value of cheques due in accordance with the provisions of Article 357 of the Penal Code, whereby courts will oblige the convicted person to pay the value of the cheque and expenses incurred by the beneficiary without filing case in civil court.

Statistics from courts indicate that the number of criminal cases that reached the Court of Misdemeanors in 2018 for cheque-related crimes were 37,130 cases and out of which 34,882 cases are already judged.

Meanwhile, the Penal Code No. (11) of 2004 indicated that the crime of a cheque without balance is punishable under article 357 by imprisonment for a period not less than three months and not exceeding three years, and a fine of not less than QR 3,000.