Accepts Deposits from People and Businesses

Lends Money

Accounts

Credit Facilities

Payment Services

Foreign Exchange

Investment Services

Isloamic Banking

Loans

Cresit Facilities

Public Joint Stock Company (PJSC)

Obtain Licences from CBUAE

Comply with Strict Regulatory Requirements

Issuing and Managing

Manage Liquidity in the Banking System

Banking Supervision

Consumer Protection

Financial Infrastructure

Foreign Reserves

Stability

Consumer Protection

Innovation

Individuals or Entities Who Have a Contractual Relationship with a bank.

Legal Structure

Relationship

Tailored Products and Services

Risk Management

Pricing and Profitability

Efficient Resource Allocation

Ensuring High-Value Clients Receive Specialised Attention

Regulatory Compliance

Marketing and Customer Experience

Accepting Deposits

Giving Loans

Funds Transfers

Cheque Collection

Bills Payment

Safe Deposit Lockers

Foreign Exchange

Trade Finance

Portfolio Management & Investment Services

UAE Central Bank

DIFC

ADGM

CB Law

Commercial Companies Law

Commercial Transactions Law

Civil Code

Consumer Protection

Payment Services and Card Schemes Regulation

Operational Risk Regulation

Confidentiality and data protection

Banks must act with due care, skill, and diligence

Regulatory reporting and compliance duties

Customers must provide accurate information and comply with terms

Right to set-off and lien in certain circumstances

Not a Minor, Should be Mentally and Financially Sound

Minor Accounts

Joint Accounts

Illiterate Customers

Non-Resident Accounts

Guardian's Documents for Minor Accounts

MOA

Trade Licence

Board Resolution

AE (country code) + 2 check digits + 3-digit bank code + 16-digit account number, totalling 23 characters starting with "AE

Reduces transaction errors

Speeds up processing

Enables automatic payment validation

facilitates seamless transfers between

Regulatory

Operational

Per bank's policy

After bank's deductions

Misuse

Fraud

Breach of Terms

Unconditional order to pay

Unconditional promise to pay

Subtopic

Debts

Commercial transactions

Transfer of ownership of a cheque by signing on back to transfer rights

Endorsee obtains legal ownership

Holder can enforce payment in court

Drawer

Drawer

Payee

Endorser

Endorsee

Bearer Cheque

. Order Cheque

UAE Commercial Transactions Law

CBUAE regulations

Drawee bank can pay cash against the cheque

Cash payment prohibited

Can only be deposited in account

General Crossing

Special Crossing

Enhances security and traceability

UAE Commercial Transactions Law permits cheque endorsement under Article 639

Special endorsement

Blank endorsement

Restrictive endorsement

UAE banks generally do not allow customer endorsement despite legal validity

Endorsement is restricted to inter-bank clearing processes for risk management where special crossing of the presenting bank is put on all cheques sent in Outward Clearing

Banks require valid ID (Emirates ID/Passport) and only pay to named payee, even for bearer cheques

Not

banks now provide partial payment if insufficient funds

Bounced cheques due to insufficient funds are treated as "executive instruments"

Allowing direct enforcement through execution courts without prior judgment

For

Under Articles 675-676 of Federal Decree-Law No. 50/2022

Mandatory partial payment system

Allows recovery of available funds

Banks must pay partial amounts unless payee refuses.

Non-criminal violations subject to fines ranging from 10% of cheque value (minimum AED 5,000) to double the cheque value.

6 months for bounced cheque civil claims

5 years for criminal cases from date of cheque receipt

For commercial disputes.

Payee can approach execution judge directly with bounced cheque stamped by bank as "insufficient funds."

‘Article 635 bis’ treats bounced cheques as enforceable instruments requiring no prior court judgment

Original bounced cheque

Bank return memo

Payee identification

Freeze on Assets

Property seizure

Travel bans

Attachment of bank accounts

Execution judge typically orders payment within 15 days before enforcement actions

Eliminates need for

Until

Payment must be more than 5% of original cheque amount

Bank issues partial payment certificate and returns original cheque with endorsement of partial payment.

Remaining unpaid amount can be pursued through execution court as executive instrument

Partial Payment service is free

Theft

Loss

Bankruptcy declaration under UAE Commercial Transactions Law.

Police report (for theft/loss),

Bankruptcy declaration

valid identification

completed stop payment form

Full indemnification to bank

Banks must refuse stop payment requests for

Customer bears full civil and criminal responsibility for consequences of stop payment order and must indemnify bank against any losses.

Banks must act promptly on valid requests

Banks

Customers who deposit cheques in their account that are drawn on other banks receive funds against those cheques from the drawer's account maintained with the drawee bank.

Cheques issued by own customers that are deposited in other banks are paid from drawer's accounts

If any cheques presented for payment are returned unpaid, they are called 'Inward Returns’.

If any cheques received for payment are returned unpaid, they are called 'Outward Returns'.

Original cheques stay in the bank where they are deposited - Cheque Truncation

Their scanned images and electronic data are used through the (ICCS)

Fully paperless process

Collecting bank for cheques drawn on other banks deposited by own customers

Paying/Drawee bank for cheques issued by own customers that are received in Inward Clearing

Faster processing and reduced risk of loss or theft

Enhanced security and audit trails

Ongoing upgrades to clearing infrastructure

Cheque Deposit (Before 10:00 AM)

Image Capture and Scanning

Transmission to CBUAE

Collates electronic cheque images received from all collecting banks according to the drawee bank

Forwards them to each Drawee/Paying Bank for verification and payment decision

Verification

Decision

Settlement

Each bank calculates its net clearing position by comparing total outward clearing (cheques sent) versus inward clearing (cheques received).

The formula used is: Net money coming in - Net money going out (Outward Clearing – Inward Returns) – (Inward Clearing - Outward Returns)

CBUAE system automatically calculates net obligations between all participating banks to minimize actual fund transfers.

Banks receive detailed reports showing individual cheque items, totals, and net settlement amounts for each clearing session.

Banks must reconcile their internal clearing accounts with CBUAE clearing summaries to ensure accuracy.

Any discrepancies between bank records and CBUAE data must be investigated and resolved before settlement.

Complete reconciliation of all clearing transactions must be completed before the daily settlement cut-off time.

Responsibility: verifying cheque validity and funds

Acts on behalf of payee to collect funds