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Checks are widely used financial instruments in commercial and personal transactions across Saudi Arabia. However, issuing a check without sufficient funds can lead to serious legal consequences. According to the Saudi Commercial Papers Law, bounced checks may be treated as a criminal offense under certain conditions, subject to strict penalties.
This article explains the situations where a bounced check is considered a crime, the applicable penalties, how the beneficiary can claim their rights, and how to protect yourself legally.

What Is a Bounced Check?

A bounced check refers to a check that is submitted to the bank but cannot be cashed due to insufficient funds, a closed account, or if the issuer instructs the bank not to pay it. It may also involve forged or non-matching signatures.

When Is a Bounced Check a Criminal Offense?

The check is considered a crime if one of the following applies:

• Issuing a check without a sufficient and withdrawable balance.
• Withdrawing funds before the check is presented to the bank.
• Instructing the bank not to pay the check without a legal basis.
• Signing the check with a forged or unmatched signature.
• Collusion between the issuer and the beneficiary to issue a check with no actual funds.

Legal Penalties Under Saudi Law

According to the Commercial Papers Law and the Anti-Financial Fraud Law in Saudi Arabia, the following penalties may apply:

• Imprisonment for a period between 6 months and 3 years.
• A financial fine of up to SAR 50,000.
• Public disclosure of the court ruling (naming and shaming).
• Prohibition from engaging in certain commercial activities.
• Blacklisting in the credit record by SIMAH (Saudi Credit Bureau).

How Can the Beneficiary Claim Their Rights?

The injured party can follow these legal steps:

1. Request a “Non-Sufficient Funds” (NSF) statement from the bank as official proof.
2. File a criminal or commercial lawsuit via the Najiz Portal.
3. Submit a direct enforcement request to the Execution Court, as a check is considered an enforceable instrument.
4. Request precautionary orders such as a travel ban or asset seizure against the issuer.

How to Avoid Bounced Check Offenses?

• Do not issue a check unless sufficient funds are available in your account.
• Ensure the signature on the check matches the one registered with the bank.
• Avoid issuing postdated checks unless adequately secured.
• Keep a scanned copy of every issued check and note the reason for issuance.

Can the Case Be Settled Amicably?

Yes, the law allows for reconciliation between the issuer and the beneficiary before the final verdict is issued. If the check amount is paid in full, the criminal penalty may be suspended or dismissed.

Issuing a check without sufficient funds is a criminal offense under Saudi law, with serious consequences for violators. To protect your legal and financial standing, always issue checks responsibly, and seek legal advice in case of disputes to avoid penalties that may affect your freedom and reputation.