Al Etihad Credit Bureau has unveiled a new mobile application that allows users to instantly assess the risk of a cheque bouncing.
The move follows the UAE government's decision to decriminalise bounced cheques earlier this year.
The ChequeScore app covers cheques issued by UAE-licensed banks and calculates the issuer’s credit score, payment behaviour, cheque issuance and clearance history in real time, the credit bureau said on Tuesday.
The app is free to download on both iOS and Android. The bureau charges a fee of Dh10 plus VAT to assess each cheque. A user can register for the ChequeScore app with an email address and phone number.
ChequeScore will help reduce the number of bounced cheques in the UAE
Marwan Ahmad Lutfi,
chief executive of Al Etihad Credit Bureau
“ChequeScore will help reduce the number of bounced cheques in the UAE,” said Marwan Ahmad Lutfi, chief executive of the credit bureau.
“Last year, bouncing a cheque was a criminal offence; however, with the new law decriminalising this at the beginning of this year, it has become imperative that UAE businesses and individuals assess the risks associated with cheques they have on hand.”
In October 2020, the UAE Cabinet updated the country’s Federal Law on Commercial Transactions with several new provisions aimed at discouraging criminal lawsuits against people and businesses over bouncing cheques.
The updated law, which came into effect across the country on January 2, 2022, redefines crimes involving bounced cheques and the issuance of cheques without value.
Under the amendments, the Central Bank of the UAE, Ministry of Economy and Ministry of Justice introduced changes relating to the partial payment of cheques and toughened administrative penalties in cases when they are issued without funds.
The scope for criminalisation of bounced cheques owing to insufficient funds has been narrowed and confined to cases of bad faith and other cheque crimes.
People who issue cheques that bounce in Dubai, with a transaction value of up to Dh50,000, will be fined Dh2,000.
Bounced cheques with a value of between Dh50,000 and Dh100,000 will attract a Dh5,000 penalty.
A Dh10,000 fine will be levied for cheques issued in bad faith, with a value between Dh100,000 and Dh200,000.
Once a user registers on the ChequeScore app, they can scan a cheque, upload an image of it or enter the information manually. The details are then sent to AECB’s credit database and the user will immediately be shown the cheque's score, which ranges from 1 per cent to 99 per cent and indicates the probability of a cheque that could bounce in the next nine months.
The cheque score is also colour-coded: a low probability of bouncing is green, medium is amber and high is represented in red, the credit bureau said.
“We look at positive and negative cheques that the person has issued in the past few years,” Mr Lutfi said.
“The cheque receiver has an indication of how risky a cheque is. Once the score is known, the onus is on the receiver’s appetite for risk to accept the cheque.”
This app will increase the sophistication of transactions in the market and promote awareness of risks associated with cheques, Mr Lutfi said.
The cheque score is “dynamic” because a person’s risk profile changes over time, so the information has to be used instantly, he added.
There were 21 million cheques issued in the UAE last year, with an average value of Dh51,000 per cheque, the central bank’s image cheque clearing system shows. Bounced cheques from individuals and companies were cumulatively worth Dh41.6 billion in 2021.
AECB does not require customers' consent to access the data, Mr Lufti said. “We are not disclosing any confidential information. This is only a risk indicator and the final decision needs to be made by the cheque beneficiary.”
The app also features a reminder notification that is sent to the issuer at predefined intervals to inform them that the cheque is due.
During the app’s trial period, more than 11,000 cheques with a total value of Dh788 million were scanned through it. More than 6,000 users signed up for the trial, AECB said.
Virtual banks explained
What is a virtual bank?
The Hong Kong Monetary Authority defines it as a bank that delivers services through the internet or other electronic channels instead of physical branches. That means not only facilitating payments but accepting deposits and making loans, just like traditional ones. Other terms used interchangeably include digital or digital-only banks or neobanks. By contrast, so-called digital wallets or e-wallets such as Apple Pay, PayPal or Google Pay usually serve as intermediaries between a consumer’s traditional account or credit card and a merchant, usually via a smartphone or computer.
What’s the draw in Asia?
Hundreds of millions of people under-served by traditional institutions, for one thing. In China, India and elsewhere, digital wallets such as Alipay, WeChat Pay and Paytm have already become ubiquitous, offering millions of people an easy way to store and spend their money via mobile phone. Indonesia, Vietnam and the Philippines are also among the world’s biggest under-banked countries; together they have almost half a billion people.
Is Hong Kong short of banks?
No, but the city is among the most cash-reliant major economies, leaving room for newcomers to disrupt the entrenched industry. Ant Financial, an Alibaba Group Holding affiliate that runs Alipay and MYBank, and Tencent Holdings, the company behind WeBank and WeChat Pay, are among the owners of the eight ventures licensed to create virtual banks in Hong Kong, with operations expected to start as early as the end of the year.
The%20specs%20
%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E2.0-litre%204cyl%20turbo%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E261hp%20at%205%2C500rpm%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E400Nm%20at%201%2C750-4%2C000rpm%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3E7-speed%20dual-clutch%20auto%0D%3Cbr%3E%3Cstrong%3EFuel%20consumption%3A%20%3C%2Fstrong%3E10.5L%2F100km%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3ENow%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh129%2C999%20(VX%20Luxury)%3B%20from%20Dh149%2C999%20(VX%20Black%20Gold)%3C%2Fp%3E%0A
ALRAWABI%20SCHOOL%20FOR%20GIRLS
%3Cp%3ECreator%3A%20Tima%20Shomali%3C%2Fp%3E%0A%3Cp%3EStarring%3A%C2%A0Tara%20Abboud%2C%C2%A0Kira%20Yaghnam%2C%20Tara%20Atalla%3C%2Fp%3E%0A%3Cp%3ERating%3A%204%2F5%3C%2Fp%3E%0A
2025 Fifa Club World Cup groups
Group A: Palmeiras, Porto, Al Ahly, Inter Miami.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, Leon.
Group E: River Plate, Urawa, Monterrey, Inter Milan.
Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
White hydrogen: Naturally occurring hydrogen
Chromite: Hard, metallic mineral containing iron oxide and chromium oxide
Ultramafic rocks: Dark-coloured rocks rich in magnesium or iron with very low silica content
Ophiolite: A section of the earth’s crust, which is oceanic in nature that has since been uplifted and exposed on land
Olivine: A commonly occurring magnesium iron silicate mineral that derives its name for its olive-green yellow-green colour
The Greatest Royal Rumble card as it stands
The Greatest Royal Rumble card as it stands
50-man Royal Rumble - names entered so far include Braun Strowman, Daniel Bryan, Kurt Angle, Big Show, Kane, Chris Jericho, The New Day and Elias
Universal Championship Brock Lesnar (champion) v Roman Reigns in a steel cage match
WWE World Heavyweight ChampionshipAJ Styles (champion) v Shinsuke Nakamura
Intercontinental Championship Seth Rollins (champion) v The Miz v Finn Balor v Samoa Joe
United States Championship Jeff Hardy (champion) v Jinder Mahal
SmackDown Tag Team Championship The Bludgeon Brothers (champions) v The Usos
Raw Tag Team Championship (currently vacant) Cesaro and Sheamus v Matt Hardy and Bray Wyatt
Casket match The Undertaker v Chris Jericho
Singles match John Cena v Triple H
Cruiserweight Championship Cedric Alexander v tba
STAY%2C%20DAUGHTER
%3Cp%3E%3Cstrong%3EAuthor%3A%20%3C%2Fstrong%3EYasmin%20Azad%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EPublisher%3A%20%3C%2Fstrong%3ESwift%20Press%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EAvailable%3A%20%3C%2Fstrong%3ENow%3C%2Fp%3E%0A
Heather, the Totality
Matthew Weiner,
Canongate
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
New UK refugee system
- A new “core protection” for refugees moving from permanent to a more basic, temporary protection
- Shortened leave to remain - refugees will receive 30 months instead of five years
- A longer path to settlement with no indefinite settled status until a refugee has spent 20 years in Britain
- To encourage refugees to integrate the government will encourage them to out of the core protection route wherever possible.
- Under core protection there will be no automatic right to family reunion
- Refugees will have a reduced right to public funds
THE CLOWN OF GAZA
Director: Abdulrahman Sabbah
Starring: Alaa Meqdad
Rating: 4/5
Other acts on the Jazz Garden bill
Sharrie Williams
The American singer is hugely respected in blues circles due to her passionate vocals and songwriting. Born and raised in Michigan, Williams began recording and touring as a teenage gospel singer. Her career took off with the blues band The Wiseguys. Such was the acclaim of their live shows that they toured throughout Europe and in Africa. As a solo artist, Williams has also collaborated with the likes of the late Dizzy Gillespie, Van Morrison and Mavis Staples.
Lin Rountree
An accomplished smooth jazz artist who blends his chilled approach with R‘n’B. Trained at the Duke Ellington School of the Arts in Washington, DC, Rountree formed his own band in 2004. He has also recorded with the likes of Kem, Dwele and Conya Doss. He comes to Dubai on the back of his new single Pass The Groove, from his forthcoming 2018 album Stronger Still, which may follow his five previous solo albums in cracking the top 10 of the US jazz charts.
Anita Williams
Dubai-based singer Anita Williams will open the night with a set of covers and swing, jazz and blues standards that made her an in-demand singer across the emirate. The Irish singer has been performing in Dubai since 2008 at venues such as MusicHall and Voda Bar. Her Jazz Garden appearance is career highlight as she will use the event to perform the original song Big Blue Eyes, the single from her debut solo album, due for release soon.
The Sky Is Pink
Director: Shonali Bose
Cast: Priyanka Chopra Jonas, Farhan Akhtar, Zaira Wasim, Rohit Saraf
Three stars
