United Arab Emirates nationals who have been detained and convicted over their issuance of defaulted checks have been released as per orders of UAE President Sheikh Khalifa Bin Zayed Al Nahyan, the Gulf News reported on Thursday.
According to article No. 401 of the Penal Code of the Federal Law No. 3 of 1987, the criminal protection on security checks cases are void if it involves Emiratis, reported the UAE daily.
The Justice Minister, the Head of Dubai Courts along with other key head departments have yet to verify if the defaulted checks on issue are security checks or not. Emiratis with cases will be released temporarily until investigations push through.
The Public Prosecution will issue orders to drop criminal lawsuits involving security checks before courts, reported the Gulf News. Detainees will be released as soon as it has been proven that the checks were issued as such.
Head of the Federal National Council’s finance committee Ali al-Nuaimi has asked the Central Bank to review cases of failed checks in order to protect the country’s banking industry, The National reported.
“If the numbers are correct, there should be some procedure to be made by the Central Bank… to consider and review this phenomenon, and see what is the cause of such a number,” he was quoted as saying by The National.
According to The National’s report, it is a criminal offence to issue checks against loans without enough balance to cover the debt.
It has been recorded that 1.5 million checks turned up defaulted in 2011 when issued for payment in the UAE, amounting to almost 55 million UAE dirhams ($15 billion).