Nabad, 14 April 2025: Bahrain’s Shura Council has proposed amendments to the Commercial Law (Bahrain Decree-Law No. 7/1987) to improve trust in commercial transactions and regulate cheque issuing.

The amendments, aim make the processing of cheques easier and facilitate their circulation, while safeguarding the rights of cheque holders or beneficiaries.

They will allow partial cheque payments where cheques bounce. Cheque holders will be able to collect part of the cheque amount if the full balance is unavailable, and will also have the option to re-present the cheque for the remaining amount. Banks will be required to honour cheques fully or partially when funds are available and will not be able to refuse payment if requested by the account holder or cheque bearer.

The amendments would also require banks to withhold cheque payments entirely or partially where they have received objections involving loss or damage. The Bahraini Central Bank will be authorised to issue decisions on alternative methods for proving partial payments, aside from cheque endorsements, and to regulate conditions and procedures for implementing partial cheque payments.

Cheque holders will be able to seek recourse against issuers and endorsers if the cheque is not fully paid on timely presentation, provided non-payment is documented by protest or other legal means. Cheques marked as having insufficient funds or a partial payment will be considered enforceable under civil and commercial execution laws, and the Minister of Justice will be authorised to regulate execution rules and procedures following approval from the Supreme Judicial Council.

The amendments will also criminalise the issuing of blank cheques for use as credit or guarantee instruments, and will impose fines ranging from 200 to 2,000 dinars for issuing these types cheques. Individuals who fill in and present blank cheques for payment will face fines of at least 10% of the recorded amount, up to twice that amount, with a minimum fine of 500 dinars and a maximum of 10,000 dinars.

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