bounced security checks

We continue to receive reports, like this one, of individuals who are wanted in the United Arab Emirates or other areas in the Middle East, for bounced security checks. I addressed the basics of this issue in a previous post, here.  At the time, it appeared that efforts to bring this matter to the forefront, led by multiple attorneys such as Radha Stirling and those at Fair Trials International, would lead to a resolution of these types of notices. While we have all had success in handling the Red Notices stemming from bounced security checks, here we are several years later with this issue is still lingering, causing incredible hardships for the subjects of the Red Notices.

The use of security checks in the Middle East

In many countries in the Middle East, where established credit verification mechanisms are still in development or are not widely used in the same manner as other parts of the world, financial institutions require the individual seeking the mortgage loan to execute an undated security check in the full amount of the mortgage. It is understood by all parties that the borrower does not have the full amount of the check in the bank.  If the mortgage payment is missed, the financial institution will deposit the check, which will “bounce,” or be returned for insufficient funds, and the institution will then foreclose on the property.

However, it also eventually became the practice of many financial institutions in the Middle East to also refer the check to the local police for criminal prosecution, despite the lack of evidence of any fraudulent or criminal intent. The property is then reverted back to the financial institution’s possession. If the borrower is not in the country, a Red Notice is often requested to aid in criminal prosecution.

As a result of this practice, many foreign nationals who are relocated by their employers, or who are forced to leave the country when they lose their jobs, and thus their legal status, find themselves in the situation where they no longer have the income that allowed them to qualify for the mortgage loan, and can no longer legally live or work in the country, but are being pursued for criminal charges that they have no way of resolving.

Request to INTERPOL for a policy statement

Earlier this month, I made a request for a policy statement on this issue to INTERPOL. The request was acknowledged and we now await the statement. It is important that INTERPOL issue a public statement regarding its stance on this issue, lest private financial institutions continue utilizing even the threat of INTERPOL involvement in cases where such involvement is improper.

It is critical for both INTERPOL and its member countries that INTERPOL’s tools not be used for improperly based charges, and that INTERPOL be utilized as an effective law enforcment organization, rather than a debt collection agency for certain member countries.

As always, thoughts and comments are welcomed.