Qatar Implements Partial Cheque Payment Mandate

Qatar's Commercial Law Amendment:

In a significant move aimed at modernizing its financial regulations, Qatar has introduced a groundbreaking amendment to its Commercial Law. The Official Gazette recently published Law No. 1 of 2024, which brings about substantial changes to the procedures governing cheque payments in the country.

Key Changes in Cheque Payment Procedure:

One of the notable changes introduced by the amendment is the requirement for drawee banks in Qatar to facilitate partial payment of cheques upon demand. This amendment, dated March 7, 2024, effectively replaces Article 585 of the Commercial Law and mandates drawee banks to initiate partial payments when the consideration for payment is less than the cheque amount.

Procedure for Partial Payment:

Under the new regulation, drawee banks are mandated to execute partial payments from the available funds in the payer’s account. Additionally, the back of the cheque must be marked with the amount partially paid, and a certificate must be issued to the cheque holder, certifying the partial payment made.

Cheque Holder's Rights and Implementation:

While the amendment grants cheque holders the option to decline receiving partial payment, their consent to such payments is presumed unless explicitly communicated otherwise. Effective from April 6, 2024, the implementation of this amendment marks a significant step forward in Qatar's financial landscape.

Regulatory Oversight and Legal Implications:

Given the authority of the Qatar Central Bank (QCB) in regulating financial institutions, it is anticipated that circulars or guidelines will be issued to streamline the implementation of the amendment. These guidelines are expected to address practical aspects such as the language of the certificate and the minimum amount for partial payments. Importantly, it's crucial to note that the introduction of partial payment does not absolve payers from their criminal liability for bounced cheques.

Conclusion:

The introduction of partial cheque payments reflects Qatar's commitment to enhancing its financial infrastructure and aligning with international standards. This amendment is poised to streamline cheque transactions, provide greater flexibility to cheque holders, and contribute to a more efficient financial ecosystem in the country. Stay tuned for further updates as Qatar continues to innovate in its regulatory landscape.