Cheque Bounce in Bahrain

Cheque Bounce in Bahrain: Understanding the Consequences

Cheques are a popular mode of payment in Bahrain, but when a cheque bounces, it can lead to serious legal and financial consequences. In this blog, we will discuss what cheque bounce is, its legal implications in Bahrain, and how to avoid it.

What is Cheque Bounce?

A cheque bounce refers to when a cheque issued by an individual or company does not have sufficient funds.  The responsibility of filling a criminal case lies with the police.

Legal Implications of Cheque Bounce in Bahrain

In Bahrain, cheque bounce is a criminal offence punishable by law. According to the Bahrain Penal Code, a person who issues a cheque without sufficient funds to cover the amount is committing a criminal offence. This may result in imprisonment or fines.

The Central Bank of Bahrain has issued strict regulations for cheque transactions, including the requirement for banks to immediately report all cheques that have been returned unpaid to the Central Bank. The Central Bank then forwards the information to the relevant authorities for legal action.

Can assets be attached because of a cheque bounce in Bahrain?

Yes, your assets can be attached depending on the product and the contact between the principle and lender.  This means that the assets cannot be sold or rented without paying the debt first. The process of attachment is typically carried out by a court or government agency and is used as a means of collecting payment for owed debts, such as taxes, judgments, or mortgages.

Consequences.

If you receive a bounced cheque, you can take legal action against the issuer. The first step is to send a written notice to the issuer. It should be informing them of the dishonoured cheque and demanding payment within a specified period of time. If the issuer fails to pay within the specified time, you can file a complaint with the police or the public prosecutor’s office.

The issuer can face imprisonment for up to three years, or a fine of up to BD 10,000. The cheque bounce will also effect your score in BCB Bahrain’s Credit Bureau. As a result any financial products that you may want to avail in future may be difficult.

Can it cause a travel ban?

Yes, a cheque bounce in Bahrain can cause a travel ban. Bahrain Penal Code clearly states that a bounced cheque is a criminal offence. Hence, if you have issued a cheque that bounced, you may face imprisonment or fines. In some cases, the authorities may also impose a travel ban on the issuer to prevent them from leaving the country and avoiding payment of the debt.

If you have received a bounced cheque in Bahrain, it’s important to take legal action to recover the debt. although keep this as your last resort. becasue if the debtor is prision and without a way to earn an income, he / she most probably wont be in a position to pay you. You can file a complaint with the police or public prosecutor’s office. If  convicted, they may face a travel ban as well as imprisonment or fines or both.

The rules and regulations regarding travel bans and the issuance of bounced cheques can vary widely by country. It is always advisable to consult with a legal professional or government agency to know the specifics.

If you want to check your travel ban or case status in Bahrain, simply click below. If you have any more queries click on WhatsApp logo and simply ask.

How to avoid cheque bounce in Bahrain.

To avoid cheque bounce, it is important to ensure that you have sufficient funds in your account to cover the amount of the cheque before issuing it. If you are uncertain about the balance in your account, you can check it online or by calling your bank.

Keep in mind that, post dated cheques can also bounce. Hence if you are issuing a post dated cheque make sure your accounts has sufficient fund to cover the amount.

In conclusion, cheque bounce is a serious offence in Bahrain, and it can lead to severe legal and financial consequences for the issuer. To avoid cheque bounce, it is important to ensure that you have sufficient funds in your account and to keep track of your cheques and account balance. By following these simple steps, you can protect yourself from the legal and financial consequences of cheque bounce.