Monday, February 4, 2008

From Lebanon

Bounced Cheques:

A note of warning to our overseas visitors. It may surprise some of our overseas readers to learn that a "bounced" cheque is a criminal offence in Lebanon. The Lebanese newspaper, The Daily Star, today has the following report, which highlights this. It seems somewhat back to front that the Lebanese Parliamentary Justice Committee is suggesting that the crime stays but the drawer's credit rating is not to be adversely affected.

Lebanese banks are required by law to report bounce cheques to the Central Office for Bounced Cheques (Centrale des Chéques Impayes - CCI ) where a customer has not honoured a bounced cheque within 15 days of presentation. Where a customer requires a chequebook the bank must consult the CCI to check if the customer is "blacklisted", before issuing a chequebook. For a customer to remove him/herself they have to make good the dishonoured cheque and once done the bank notifies the CCI. For a first time offence the customer is removed from the list after six months, eighteen months for a second occurrence and thirty-six months for the third time. The blacklist is updated monthly.

"Justice committee modifies law on bad checks"
"The administrative and justice parliamentary committee, presided over by MP Robert Ghanem, held a session on Monday to discuss modifications in law pertaining to writing bad checks. The committee decided that the crime would remain punishable but that writing a bad check would no longer affect the perpetrator's credit. The committee decided to drop the public's right to prosecution for the crime as soon as personal prosecution is dropped. The committee approved of a system in which a check remains a means of payment, not only a line of credit."

No comments: