What Are the Penalties For a Bounce Cheque in Saudi Arabia?
Cheque Bounce is a Criminal Offence in Saudi Arabia
Saudi Arabia considers cheque bounce a crime and imposes severe penalties on those who commit this offense. This article explains the legal consequences of a cheque bounce in Saudi Arabia, as well as what to do if you receive a bounced cheque.
Legal Consequences of Cheque Bounce in Saudi Arabia
According to Article (118) of the Commercial Papers Law, those who issue cheques without sufficient funds face imprisonment and fines and the same is applicable to those who write a cheque with a false or incorrect signature.
- The penalty for first-time offenders is a jail term of up to 3 years and a fine up to SR 50,000 ($13,331).
- In the case of repeating the crime within three years, he will get a prison sentence of up to five years and a fine of up to SR 100,000 ($26,662).
Also Read: How to Check Your SIMAH Credit Report
What to do if you receive a bounced cheque
If you receive a bounced cheque, the first step in recovering from a bounced cheque in Saudi Arabia is to register a complaint with the police. The complaint will be forwarded to the civil and criminal courts. The criminal court will review all of the evidence and hand down a verdict. The defaulter can be given up to three years in prison, and a fine of up to SR 50,000. The good news is that the process is simple and inexpensive.
In the case of a criminal court, the culprit will be sentenced to jail, and the civil court will decide on the civil claim against the person who wrote the cheque. The judge will issue a decree requiring the debtor to pay the full amount of the check, plus interest and other costs. If the defendant fails to pay, additional charges will be levied against them. The case may be terminated if the accused fails to follow the order.
Tips for Avoiding Bounced Cheques
Sending a cheque is a slow and expensive process, and it can be quite nerve-wracking for both the sender and the recipient. For this reason, many people use electronic banking or cash to transact instead. To avoid bounced cheques, make sure that your signatures match the signatures on file for your account.