Bounced Check Cases in Saudi Arabia

Bounced check cases in Saudi Arabia are among the most significant and common legal issues, especially in recent times. The primary reason for their importance is the increasing number of individuals using fraudulent methods to steal money from honest people. If someone falls victim to check fraud and the bank refuses to cash the check due to insufficient funds, the person should file a bounced check lawsuit, as this is one of the essential steps to take when defrauded.

Bounced Checks in Saudi Arabia

Checks are considered a type of commercial paper used in Saudi Arabia, along with promissory notes and bonds. Banks are the primary source of checks, issuing and endorsing them as a form of financial payment. This method speeds up commercial payments and facilitates their completion.

The main goal of using checks for payments is to replace traditional payment methods, such as handing money directly from one person to another. In the case of checks, funds are transferred securely from one account to another at the bank, making the process safe, easy, and fast.

Checks also eliminate risks associated with traditional methods, such as counting errors or the theft of funds before they are secured.

Penalties for Bounced Checks in Saudi Arabia

Due to the widespread use of bounced checks for fraudulent activities, which has led to an increase in the number of such cases in Saudi Arabia, the Ministry of Justice introduced a new Saudi check law. This law aims to protect the rights and funds of traders and users while ensuring credibility and honesty in check transactions.

According to the new Saudi check law, the penalties for issuing bounced checks are as follows:

• Imprisonment for no less than six months and no more than three years for the issuer of the bounced check, along with a fine not exceeding SAR 50,000.
• If the offense is repeated, the fine can increase to a maximum of SAR 100,000, and imprisonment can extend to a maximum of five years.
• For public rights in these crimes, the fine will be equivalent to the value of the check.
• According to Article 27 of the new Saudi check law, the person issuing a bounced check will face public shaming, have their bank account frozen, and be prohibited from opening any new bank accounts. Their name will also be published in local newspapers.

Acquittal in Bounced Check Cases in Saudi Arabia

There are certain cases where acquittal is possible, in accordance with the commercial paper system. Below are the main situations that can lead to acquittal:

• Discrepancies between the information on the check and the information registered at the bank, such as incorrect account numbers or names.
• Differences between the numeric and written amounts on the check.
• The issuer of the check must be fully competent. If the issuer is a minor or suffers from a condition affecting their legal capacity, the bank may reject the check.
• The payee must also be fully competent; otherwise, the bank will not cash the check.
• The check must be written in an authorized format, not just accepted in principle.
• The signature on the check must match the signature registered at the bank.

These reasons increase the chances of obtaining an acquittal, as they could render the check void. It’s important to consult with an experienced lawyer in bounced check cases to leverage these defenses effectively.

Filing a Direct Misdemeanor in Bounced Check Cases in Saudi Arabia

A direct misdemeanor is similar to filing a bounced check lawsuit but differs in that the victim files it directly with the Public Prosecution without questioning the defendant first. The Public Prosecution then schedules the court session for trial.

An indirect misdemeanor begins with a complaint filed at the nearest police station and involves slower procedures.

Steps to File a Direct Misdemeanor for a Bounced Check:

• Retain the check stamped by the bank and obtain a protest letter from the bank.
• File a misdemeanor case with the Public Prosecution without questioning the defendant.
• The Public Prosecution conducts investigations and refers the case to the criminal court near the defendant’s residence.
• The court then begins the legal proceedings, summoning both the plaintiff and defendant, listening to their statements, and verifying all the evidence and information provided in the case.
• Finally, the court issues a ruling based on the circumstances and details of the case.

Conclusion

According to Saudi law regarding bounced check cases, the payee’s right to claim the check’s value expires after three years if no action is taken. Therefore, it is advisable to request the check’s value before the expiration period and to cash it as soon as possible to detect any fraud or issues.