Bahrain’s New Cheque Enforcement Regime: What Creditors and Corporates Need to Know

Ministerial Resolution No. (6) of 2026 introduces a streamlined enforcement framework for cheques endorsed by the drawee bank as having “insufficient funds” whether due to full or partial non-payment. The Resolution reflects recent amendments to Bahrain’s Commercial Law and confirms a significant shift in how bounced cheques may be enforced in practice.

With the new framework now in effect, qualifying cheques may be enforced directly through the execution courts, without the need to initiate separate substantive civil proceedings based on merits. This materially alters the risk profile of cheque issuance and the enforcement options available to creditors.

Cheques as Directly Enforceable Instruments

Under the new framework, a cheque endorsed by the drawee bank as having insufficient funds is treated as an enforceable instrument for the purposes of the Civil and Commercial Enforcement Law.

This allows the holder of the cheque to proceed directly to enforcement, rather than first filing a civil claim to establish liability. In practice, this is expected to reduce enforcement timelines and limit the scope for delay-based defences previously relied upon by drawers.

Electronic Enforcement and Procedural Requirements

Enforcement applications must be submitted electronically through the “Opening Enforcement Files” service available via the Information & eGovernment Authority’s platform.

The Resolution adopts a document-driven and formalistic approach. An enforcement application must be accompanied by all prescribed documents, which may include:

• a power of attorney issued by the applicant, where applicable
• evidence that the drawer has been formally notified and requested to make payment
• a bank certificate confirming insufficient funds
• a copy of the original cheque (front and back)
• evidence of payment of the fee for endorsing the cheque with the enforcement formula
• payment of the prescribed court fees

Failure to submit any required document will result in rejection of the enforcement application. Importantly, the Resolution provides that rejected applications do not attract a refund of the fees paid, increasing the cost consequences of procedural non-compliance.

Practical Implications for Creditors

While the Resolution enhances the efficiency of cheque enforcement, it also places a premium on procedural accuracy. Creditors should be aware that:

• minor documentary deficiencies may prevent enforcement altogether
• unsuccessful applications may need to be refiled, increasing cost and delay
• early preparation of enforcement documentation is critical once a cheque is dishonoured

For corporate creditors and financial institutions, the ability to move directly to enforcement is likely to strengthen leverage in recovery discussions and settlement negotiations.

Implications for Cheque Issuers

For drawers, the Resolution significantly narrows the window for delaying enforcement through procedural challenges. Issuing cheques without confirmed liquidity now carries an increased enforcement risk, particularly where cheques are used as security or payment instruments in commercial arrangements.

Businesses relying on post-dated cheques or cheque-backed guarantees should review their exposure and internal controls considering the new framework

How ASAR Can Assist

ASAR advises clients on:

• enforcement strategy for cheques endorsed as having insufficient funds
• pre-enforcement preparation and procedural compliance
• filing and managing electronic enforcement applications
• addressing rejected enforcement filings and refiling strategy
• coordinating enforcement proceedings alongside settlement discussions
• reviewing cheque-related risk and internal controls for corporates and financial institutions

If you have cheques requiring enforcement or want to review your internal controls in light of the new framework, ASAR’s team can provide tailored support. Reach out to us at asarbh@asarlegal.com.

* Legal reference: Ministerial Resolution No. (6) of 2026 regulating the rules and procedures for the enforcement of cheques endorsed by the drawee as lacking sufficient funds for payment