laws

The given law, Bahrain Decision No. 13/2020, regulates negotiable electronic cheques in Bahrain. It is issued by the Governor of the Central Bank of Bahrain. The law refers to various existing laws and decrees related to commerce, evidence, electronic communications, and financial institutions. The law defines terms such as "Law" (referring to Bahrain Decree-Law No. 55/2018 on Negotiable Electronic Registers) and "Electronic Cheque" (a negotiable instrument in electronic form). The law states that for matters not specifically addressed in this law, the provisions applicable to paper cheques under the Commerce Law, cheque-related laws, and directives issued by the Central Bank of Bahrain and Financial Institutions Law shall apply to electronic cheques. The law establishes the System, an information system for the issuance, trading, storage, and control of electronic cheques. The System can be operated by the Central Bank of Bahrain or a licensed company. The operator of the System must maintain information confidentiality, adhere to electronic registers management standards set by the Bank, and ensure the protection of information and safe access. The operator is required to set rules for the operation of the System, including rules for information preservation, security, disposal, and elimination. These rules require the approval of the Bank and must be announced as specified by the Bank. The Electronic Cheque service can only be provided to retail banks participating in the Bahrain Cheque Truncation System and meeting operational requirements. The repayment consideration for electronic cheques is in Bahraini dinars, but other currencies may be approved by the Bank. The operator of the System is liable for any damage caused to a person who reasonably relied on an electronic cheque if the operator fails to meet the requirements stipulated in the law and if the damage was intentional or due to negligence on the part of the operator. The law was issued on 25 Ramadan 1441 H (corresponding to 18 May 2020) and was published in the Official Gazette of the Kingdom of Bahrain, Issue no. 3472 dated 21/05/2020, page 20.