Expats, be cautious on financial transactions, may lead two years of imprisonment and AED 5000 fine

ABU DHABI: In the UAE, individuals who falsely sign cheques face severe legal consequences, including imprisonment and fines. Under Federal Law No. (31) of 2021, forging a cheque signature is classified as a criminal offense, punishable by imprisonment ranging from six months to two years, along with a fine of at least 10% of the cheque’s value.

The law outlines the essential elements of a valid cheque, which include the word "cheque" written in the same language as the cheque paper, an unconditional order to pay a specified amount, the name of the payee, the place of payment, the date and the signature of the drawer. A returned cheque due to a signature mismatch can lead to legal action if the discrepancy is found to be intentional.

In cases where a signature is deliberately forged, the holder of the cheque can pursue civil or criminal proceedings. The offender may face imprisonment of up to two years and a fine of up to AED 5,000.

If the cheque is returned due to an incorrect signature, the drawer may be required to issue a new cheque with the correct signature on file with the bank. The legal provisions under Article 453 ensure that such matters are dealt with in the UAE courts to recover the due amount.