Law Type:

Commercial Law

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Saturday, May 31, 2025

Bolstering Commercial Integrity: Major Overhaul of Cheque Regulations in Bahrain's Commercial Law (Law No. 23 of 2025)

Bahrain's Law No. (23) of 2025 significantly overhauls check regulations within its Commercial Law to bolster financial stability and commercial integrity. Key changes include mandating partial payment of checks when full funds are unavailable, making checks with insufficient funds or partial payment directly enforceable executive instruments, and prohibiting the issuance or use of blank checks for credit or guarantee purposes with substantial fines. These amendments, which also grant the Central Bank of Bahrain enhanced regulatory powers, aim to increase trust in financial instruments, reduce commercial disputes, and improve the overall business environment by modernizing how checks are handled and enforced.