Expats beware: Even small mistakes can cost you lakhs in fines and two years of jail time

ABU DHABI: A significant number of Indians are employed in the UAE and they often need to conduct financial transactions at local banks for various purposes. Nevertheless, the UAE's stringent legal framework demands utmost caution. Even a minor error in the signature on a cheque can result in fines and imprisonment.

If a cheque bounces due to a mismatched signature, you'll face a bank charge plus a legal fine of 5,000 Dirhams (approximately ₹1,14,077) and imprisonment for 6 months to 2 years. There are certain things to keep in mind when issuing or receiving a check in the UAE. Ensure the following details are present.

1. The word 'Cheque' in the same language as the Cheque (e.g., 'Cheque' in English).
2. Account holder's name.
3. Payee's name (recipient of the funds).
4. Place of issue (the location where the check is drawn).
5. Date of issue (date when the check can be cashed).
6. Signature of the issuer (person signing the check).

The most crucial aspect is the signature. If the signature is mismatched, severe penalties will be imposed. The fine will be double the amount mentioned in the cheque. However, the law stipulates that the fine should not exceed twice the cheque's value. Even if the account is closed or the entire amount is withdrawn before the date mentioned on the cheque, the same penalties will still apply.