Given that SAMA has noticed the multiplicity of complaints related to the grievance of customers (beneficiaries) against the refusal of banks (drawee) to cash personal checks due to the presence of instructions from customers (drawers) to stop the payment of these checks on the pretext of loss (missing) of those checks in exploitation of the relevant articles of the Commercial Papers Law, including Article No. (105) of the Commercial Papers Law, which states that "The drawee shall pay the check, even after the expiry of the period prescribed for presentment thereof. The drawer may not object to payment of the check prior to the expiry of the period prescribed for presentment thereof except if it is lost or its holder becomes bankrupt or incompetent" and that there is a need to issue instructions to limit this phenomenon. 

Therefore, SAMA addressed the Ministry of Commerce and Industry under letter No. 1727 /MZ/M A T dated 20/11/1426 H regarding this matter and SAMA received the letter of His Excellency the Minister of Commerce and Industry No. 2561/11 dated 4/7/1427 H to the effect that His Excellency shares SAMA's opinion regarding this phenomenon and the exploitation of the text of Article No. (105) of the Commercial Papers Law, and that His Excellency agrees with SAMA in issuing instructions that limit the violations mentioned in those complaints.

Based on SAMA's keenness to enhance confidence in dealing with cheques as a tool to fulfill financial obligations in commercial transactions, to prevent manipulation of regulations and exploitation by fraudsters and bad faith, and to avoid the regulatory liability and penalties that may fall under the penalty of both the drawer and the bank (drawee) stipulated in Articles No. (108, 118 and 119) of the Commercial Papers Law.

We inform you that the cases in which the cheque is considered lost referred to as lost in the text of Article (105) of the Commercial Papers Law are the following cases:

1) If the personal cheque is lost from the drawer before he delivers it to the beneficiary.

2) If the banker cheque is lost from the person issuing it before it is delivered to the beneficiary.

3) If the cheque, whether personal or banker, is lost from the beneficiary before cashing it from the bank.

In order to achieve the positive application of the above-mentioned article, the bank shall, in the event that the customer who draws the cheque submits to him to report the loss of a cheque that he had previously written to one of the beneficiaries, the bank shall ask him to issue an objection paper in payment of the lost cheque that includes the cheque number, date, amount, name of the beneficiary and the circumstances surrounding its loss, and an acknowledgment that once the bank finds that the cheque is in the possession of the first beneficiary and not an appearance of others, and presents it to the bank for disbursement on the date of its submission, and the bank ensures that it is complete. The formal conditions of the cheque, the validity of the drawer's signature, and the availability of the value of the cheque in the account of the customer (drawer), the value of the cheque will be paid to the beneficiary directly without reference to the drawer, and that the objection paper shall include a reminder of the drawer of what is stated in the text of Article No. 118 of the Commercial Papers Law, and a sample of an objection paper shall be attached in the payment of the check.

To review and act accordingly and apply the objection paper form in the payment of the lost cheque by the drawer, noting that SAMA will study and address similar complaints received and take the necessary corrective measures in this regard.