Tuesday, December 27, 2011

Electronic images of cheques can be used as proof before UAE courts of law


The UAE Central Bank said yesterday that it had obtained a decision by the Ministerial Council for Services to include images of cheques sent to the Central Bank electronically, among tools that are subject to the provisions of Federal Law No. (1) of 2006 concerning electronic transactions and commerce, and as document of proof before the UAE courts of law.
The decision based on the text of Article 2.3 of the law, also said electronic images can be accepted provided that the original cheques are kept with banks for cheque forgery case proceedings, as needed.
"Therefore, it has been decided to stop the sorting and exchange process of physical cheques at the Central Bank in Abu Dhabi and Dubai, starting from 29 February 2012," said a circular sent to all banks operating in the UAE.
Image cheque clearance system (ICCS) member banks have to keep the original cheques deposited with them for collection and stamp them with the following statement, before sending the cheque's images electronically to the Image Cheque Clearing System, said the circular: "True copy of cheque deposited with [xxxx] that undertakes to present it upon request."
The enhancement of the electronic image cheque clearing procedures will cut costs relating to cheque clearing and improve collection time.
The Central Bank also asked all banks to comply with the above requirements, keep the original cheques deposited with them for the legally binding period and present them upon request, starting from February 29.
The Central Bank said it is constantly endeavouring to develop and enhance services provided to banks and other financial institutions operating in the UAE.

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