A proposed amendment to the Exchange Ordinance will soon be presented in Parliament, introducing stricter penalties for issuing cheques without sufficient funds. According to the new provisions, individuals found guilty of such offences could face a fine equivalent to the value of the cheque and a prison term not exceeding two years.
The proposed law will apply in cases where:
The cheque is presented within six months of its issuance;
The payee or holder of the cheque makes a written demand for payment from the drawer within 90 days of being notified of the cheque’s return; and
The drawer fails to make the payment within 90 days after the demand.
These penalties will also apply to cases where cheques are issued from closed accounts or accounts lacking sufficient funds.
As part of the amendment, the returned cheque itself will be accepted as evidence for legal proceedings. A senior official from the Ministry of Justice stated that the main objective of the amendment is to strengthen protections for financial institutions and enhance the integrity of cheque-based transactions.
