In the UAE intentionally forging a signature, especially on a cheque is considered a serious crime. It damages trust in financial transactions and harms individuals and businesses. Such kinds of offenses are addressed under the UAE Penal Code and the UAE Commercial Transactions Law. These laws provide victims with both criminal and civil remedies. Individuals facing issues related to cheque forgery are encouraged to seek legal advice in Dubai to navigate the complex legal and financial repercussions effectively.

The validity and issuance of cheques in the UAE are regulated by the Commercial Transactions Law. This is implied by Article 627; the primary condition for the issuance of a legally valid cheque is that the cheque satisfies certain fundamental requirements, such as the drawer’s signature. Those who violate these requirements may result in a legally invalid cheque.

Article 630 of the Commercial Transactions Law states that the drawer is prohibited from issuing a cheque without adequate funds in the account. Article 631 permits the drawee, who is usually the bank, the ability to check the availability of funds to confirm the authenticity of the cheque. It is illegal and punishable if the drawer has put a forged signature on the cheque and the bank has the authority to check the genuineness of the cheque. If the bank finds the signature on the cheque is forged, the bank may refuse to honour the cheque and is considered an invalid cheque. Consequently, the drawer may face serious financial and legal consequences.

According to Article 251 of the UAE Penal Code, forgery is defined as the act of altering the original document in order to delay with its intended use. Methods of forgery include the alteration of existing documents, the application of counterfeit signatures or seals, cheating or fraud without consent, the creation of fraudulent documents, the unauthorized completion of blank papers with signatures or seals, false impersonation, and the alteration of clothing or other personal information. Article 253 of the aforementioned law states that forgery of official documents can result in temporary imprisonment of up to ten years, while forgery of unofficial documents can lead to a jail sentence.

The act of fabricating, misappropriating, or improperly misusing documents, including cheques, is considered a serious offence which may be subject to penalties, such as imprisonment or fines, depending on the nature and level of the fraudulent activity.

The Legal Consequences of Forgery
The Commercial Transactions Law may impose penalties for the forgery of cheques. Individuals who are found guilty of forgery or fraudulent activity related to cheques may be subject to the following penalties, which are outlined in Article 675 of the aforementioned Law:

1. Imprisonment terms may extend from six months to two years.

2. Up to a maximum of double the cheque’s value, a minimum fine of AED 5,000 or 10% of the cheque value whichever is higher.

3. The penalties may be increased in cases of repeat offences, as stated in Article 675.

According to Article 629, Cheques issued and payable within the UAE must be drawn on a bank. When a bank provides a chequebook with blank cheques, each cheque should mention the name of the account holder and their account number. Cheques can be drawn using written application forms provided by the bank, provided they meet the bank’s format requirements.

All signatures on cheques and application forms must match the specimen signatures on record. Furthermore, the account holder is liable for the account, whether it has a credit or debit balance.

Civil Remedies Available to Victims
In addition to criminal consequences, victims of cheque forgery may apply for civil compensation for their financial losses. Even in the event of forgery, the drawer of a cheque is still obligated for its payment under Article 637 of the Commercial Transactions Law.

Furthermore, the drawer is responsible for ensuring that payment is made, and any attempt to avoid or prevent this responsibility will be regarded as invalid and unenforceable. Victims have the right to file civil suits to recover the amounts owed under the forged cheque.

Procedures for Seeking Legal Action.
Victims should report the forgery of cheque to the police, they will then begin an investigation into the matter. This is the first step in filing a criminal complaint. Following the provisions of Article 675 of the Commercial Transactions Law, the offender may be subject to imprisonment, fines, or both.

In order to establish that the transaction was fraudulent, it is important to provide the substantial evidence, such as the forged cheque, bank statements, and any other relevant communication that is related to the case. Cases involving fraudulent financial transactions require strategic legal representation from the best law firms in the UAE to secure both criminal justice and civil compensation.

To recover the amount that is owed to them, victims have the option of filing a civil lawsuit either simultaneously with the criminal proceedings or after they have completed the criminal proceedings. The courts may have the authority to order the drawer to remit the cheque’s value in addition with any additional compensation for the victim’s damages. Banks may be responsible for verifying the fraud, restricting the payment, and helping the victim get their money back. Victims of forged cheques can benefit from the support of a legal consultancy in Dubai to initiate appropriate legal action and recover their losses.