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As one of the top-notch banking lawyers in Dubai, we specialize in providing legal advice and support to clients involved in complex transactions and disputes in the banking and finance industry.
Banks are among the most crucial economic institutions in the UAE, playing a vital role in supporting economic growth and providing comprehensive banking services to individuals, institutions, and companies
Banking law in Dubai forms the primary legal framework governing financial operations in the region, with the Central Bank of the United Arab Emirates serving as the main regulatory authority
At AL ITEZAN ADVOCATES & LEGAL CONSULTANTS, our expert lawyers offer a comprehensive range of legal services in the banking and financial sector, covering various aspects of banking law in Dubai
Key Points of Banking Law in Dubai
**Legal Framework**
Banking law in Dubai is defined by the legal framework that regulates financial operations. The Central Bank of the UAE plays a crucial role as the regulatory authority
**Legal Entities**
Besides the Central Bank of the UAE, other legal entities govern the banking system in Dubai, including commercial law and the Islamic banking code
**Legal Services for the Banking and Financial Sector**
Our team of lawyers specializes in handling banking and financial matters, providing legal services such as loan financing, project financing, debt recovery, and insolvency issues
**Relationships with Banks**
We collaborate with several banks in the United Arab Emirates and act as legal representatives in civil or commercial courts. We assist them in debt recovery, handle unpaid checks, and represent them in criminal disputes, whether initiated by the banks or against them
For reliable legal services in the banking and financial sector, contact our banking law consultants at AL ITEZAN ADVOCATES & LEGAL CONSULTANTS
The new law provides the following remedy for insufficiency or unavailability of funds: if a cheque is bounced, the beneficiary can use the bounced cheque to file for an execution case before the courts in the UAE under Article 635 bis.
Article 635 bis of the amended Commercial Transactions Law states as under. “A check whereto a notice of unavailability or insufficiency of funds is affixed by the drawee shall constitute a write of execution under the Implementing Regulation of aforementioned Federal Law No. 11/1992, and its bearer may request its full or partial compulsory execution.
Accordingly, once the bank confirms the unavailability or insufficiency of funds, Article 635 bis of the amended Commercial Transactions Law permits the beneficiary to file an execution case in accordance with the Civil Procedure Law before the courts in the UAE. This means that execution proceedings can be filed against the issuer of the cheque. As part of these proceedings, the court may order the attachment or seizure of the issuer’s movables, shares, real estate, and other assets up to the value of the cheque.
Under Article 4 of the Bank Regulations, if a customer has funds in a dormant account, the concerned bank should be approached either personally or through legal counsel. The customer must submit a claim to prove their identity. The bank is required to verify the customer’s identity and ensure all provided details are satisfactory. Once the verification is complete, the bank must pay the amount in the dormant account to the customer, including any applicable interest.
If the bank decides to issue a chargeback, you have two options: you can accept the chargeback if there is any fault on your part, or you can contest it through a process called “Representment.”
To contest a chargeback, you must submit solid evidence proving the customer’s claim is invalid and the chargeback is illegitimate. This evidence may include proof of purchase ( transaction receipt), any email or telephonic conversations, tracking information of the shipment, or any photographs or screenshots that support your case. In some instances, you will also need to include a rebuttal letter along with the relevant evidentiary documents, following the guidelines of the respective bank or card issuer.
It is crucial to submit all necessary evidence within 7 working days.