Postdating cheques dating after a relationship or divorce
Here is some helpful information about the use of cheques and how they are processed by financial institutions.
All cheques must be processed – or cleared and settled – through the payments system. When you deposit a cheque into your account, your bank will send the cheque to the bank of the person who wrote the cheque.
Our specialised due diligence team can research the company of your choice and make sure that their reputation is robust enough for a healthy transaction.
No matter the transaction, big or small, it is important to make sure that your arrangement is pre-emptively as secure as possible.
However, due to it being a criminal offence, penalisation of bounced cheques may result in a criminal sentence and, at minimum, detainment along with a fine.
Additionally, some courts may even impose travel bans as a penalty on bounced cheques.
When you are able to rely on a supplier and it is possible to pay with post-dated cheques, with full confidence that the transaction will be honoured, you can assure a robust financial future.It is important to understand the penalties of a bounced cheque, especially due to the fact that the charges differ from between emirates within the UAE.For example, in Dubai you would expect a fine from around AED 2,000 – AED 10,000.That bank makes sure that the cheque is legitimate and there are enough funds in the cheque-writer’s account to cover the cheque, and then sends the funds to your bank.This process can take a few days but, for most cheques, the bank makes the funds available to the customer right away.
This quote nicely depicts what course of action should be taken before entering a business transaction, especially in the case of post-dated cheques being issued.