What to do when your firm has been blacklisted in UAE

Legal

Know your legal rights in the UAE

We have been running a business consultancy company in Sharjah since 2013. Our company was blacklisted by the Central Bank of the UAE in February 2017. Our company's account was closed by the bank, due to which two cheques for Dh2,500 and Dh3,500 issued by us bounced. We eventually paid the party concerned in cash. We filed a complaint with the Central Bank of the UAE and got a reference, but never received any response. We are now facing problems running the business without a bank account. Please advise how to legally remove the blacklisting of our company.

Pursuant to your queries, it is not clear from your question whether closure of your bank account resulted in dishonour of the cheques issued by you; or whether your bank account had been closed due to dishonour of cheques issued by you; or whether the licence has been blacklisted/blocked by the Central Bank of the UAE due to any other reason? How can you operate your licence if your licence is blacklisted/blocked by the Central Bank of the UAE? Conducting any business under a blacklisted/blocked licence is illegal.

Normally, the Central bank of the UAE does not close bank accounts if two cheques for Dh2,500 and Dh3,500 are dishonoured upon presentation to your bank. It seems that your licence may be blacklisted/blocked by the Central Bank of the UAE due to some other reason.

If the licence is blocked due to dishonour of the aforesaid cheques - which you have subsequently paid in cash to the debtor - you may obtain a release from the debtor and provide it to the Central Bank of the UAE with a request to remove the block on your licence.

Know the law

"If the licence is blocked due to dishonour of the aforesaid cheques - which you have subsequently paid in cash to the debtor - you may obtain a release from the debtor and provide it to the Central Bank of the UAE with a request to remove the block on your licence."

Source: khaleejtimes