The total value of bounced checks amounted to SR10 billion, Dr. Khaled Al-Nuwaiser, a noted lawyer, said here Saturday. He also revealed that thousands of cases of bounced checks are being looked into by courts and the offices of the Committee for Resolution of Commercial Paper Dispute. “Given that a check is a payment instrument and is the most widely used commercial paper, it is necessary to strengthen the regulations penalizing the manipulators,” the lawyer said. Saudi Gazette reported last month that according to a Cabinet decision effective July 6, persons accused of writing a check for which the account holder does not have sufficient funds, writing a check and then withdrawing funds from the account leaving a sum lower than the value of the check, ordering that the check not be paid after it has been written, or intentionally writing or signing a check in such a way that it cannot be processed, will face prosecution. Al-Nuwaiser said complaints and reports concerning bounced checks must be addressed to criminal investigation officials. In the beginning, complaints over bad checks will be handled by the police as a criminal offense, with public prosecution conducted through trade bill settlement offices at the Ministry of Trade and Industry. The settlement committees will have 30 days to issue rulings which may include prison and public naming in regional newspapers, but they may exempt defendants from prison if they subsequently pay the sum demanded or if a settlement is reached between the parties involved. The sources added that guilty persons who commit any of the offenses again within three years of their original convictions will face up to five years' imprisonment and a maximum fine of SR100,000.
