JEDDAH, 6 September — The Ministry of Commerce plans to take strong penal action against the growing practice of issuing dud checks, according to an official of the ministry’s branch here.
“Checks without bank balance negates the very purpose of checks and hamper commercial activities,” said Mohammed Al-Harbi, director general of the ministry’s Jeddah branch.
Though he did not specify the number of people or companies against whom complaints were received for issuing dud checks, Al-Harbi said the ministry has instituted an inquiry into all people and companies who have violated regulations governing checks.
Those who issue dud checks will be fined up to SR5,000. They will also have to give an undertaking that they will not repeat the offense in future. In the event of repetition they will be fined a bigger amount.
In a related development, the Jeddah Chamber of Commerce and Industry warned its members against issuing checks without sufficient bank balance. Majid Al-Qasabi, secretary-general of JCCI, said the chamber is planning an enlightenment program on the importance of checks and risks involved in issuing dud checks.
The chamber is also coordinating with local banks to evolve a mechanism to curb the illegal practice. He suggested that banks should make sure there is sufficient money in the accounts of those who demand check books.
The Commerce Ministry will also launch an intensive campaign against the phenomenon of bouncing checks, focusing on the severe punishment to violators of regulations and familiarizing people with the risks involved in the practice. The chambers in various cities will also organize seminars as part of the campaign.
