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Blank Checks Are Illegal in UAE

Are you new in the UAE? Do you have an idea of how banking works in this foreign country? If you have a little background about the banking services in Dubai or in any parts of UAE, you’ve come to the right place because this article will introduce to you the important information about issuing blank checks in the country.

Also Read:  Things to Consider When Relocating to Dubai

Blank checks are checks issued wherein the amount is left as blank so that the payee can write on it. In this case, the payee is the vendor, lender, or the person to whom you owe the loan. If this is the first time you hear about blank checks, you should be able to know first that issuing this is considered illegal. Issuing a blank check If you issued a blank check, expect that you will be serving time in jail. To give you a heads up on what might happen when you’re in UAE, here’s the list of things you need to know.

Checkbook Blank

Helpful Information About Issuing Blank Checks in UAE

  • Issuing a blank check for the purpose of giving your lender a guarantee of payment is one of the many reasons why locals and expats end up spending time in jail.
  • Banks may ask for blank checks so they can issue you credit cards or loans saying that it is the policy of the bank but remember that it’s illegal so you better decline the offer unless you want to be punished.
  • A lot of expats believe that issuing blank checks in fine because it’s what the bank agents say. While these people will convince you to give this kind of guarantee, always practice skepticism.
  • The central bank has confirmed that issuing blank checks is illegal in the country in 2014, especially if it’s for the purpose of giving guarantees to financial institutions.
  • More than 90% of bank customer does not know about this policy. The fact that blank checks cannot be used as evidence in the court should be spread out to expats living in UAE.
  • If the bank insists that you should issue them blank checks, do not fall for it! Tell them that as per the law, blank checks cannot be used in the court if in case a certain argument comes up between you two.
  • If you want to apply for a loan or a credit card, you should write the amount requested instead so as not to make it a blank check. This is the best way you can avoid serving time in jail.
  • If the bank insists that you should not write any amount or else they will not issue you any credit card or loan, know that they have the right to do so if it’s in their policy. On the other hand, you have the right to decline their offer knowing that there will be illegal activity on your part.

Also Read: Cheapest Accommodation Areas Dubai

Expats should be well-aware of the laws and events that happen around them. If you are in UAE right now, don’t forget to share this with your family and friends.

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