The Qatar Central Bank Issues New Instructions Regarding Bounced Cheques
November 24, 2020
By: Michael Earley, Senior Associate
The Qatar Central Bank (“QCB”) recently issued new instructions to banks in an effort to limit the number of bounced cheques being issued in Qatar. The instructions introduced a newly inaugurated central system in which the Qatar Credit Bureau, which holds the banking data of customers, will track the names of individuals and entities in Qatar that have issued cheques with insufficient funds to cover the signed amounts.
The Qatar Credit Bureau will issue reports to the banks identifying the bounced cheques writers. Under the new instructions banks are prohibited from issuing or delivering new chequebooks to such individuals until such time as the outstanding sums have been settled. Bank are also required to report bounced cheques to the Qatar Credit Bureau.