CJD Talks 2024: Understanding the New Check Regulations in Tunisia
The CJD Talks 2024 recently welcomed Mr. Oualid Gadhoum, a law professor at the University of Sfax and independent expert, to discuss the new regulations related to checks in Tunisia and their implications. This podcast provided valuable insights into the changes effective as of August 2, 2024, and their repercussions for check users and businesses.
A Deeply Rooted Check Culture in Tunisia
For three decades, the use of checks as guarantees and the issuance of post-dated checks have become commonplace in Tunisia. This phenomenon has transformed into a genuine culture, where commercial transactions rely on checks, often under the pressure of established practices.
Widespread Panic with the New Regulation
The new check law, effective as of August 2, 2024, has sparked panic among those holding post-dated checks until 2026 or 2028. According to this regulation, any post-dated check with an expiration date beyond February 1, 2025, will be invalidated.
Key Changes in the Regulation
- Elimination of bearer checks: Endorsement of checks is now prohibited, and all checks must be crossed.
- Expiration of checks: Each check is now subject to an expiration date.
- Introduction of a cap: Checks can no longer exceed 30,000 dinars, a measure that poses a problem for large enterprises accustomed to more significant transactions.
These measures aim to reduce the use of checks as guarantees and encourage the use of bank transfers instead.
Major Impact on Businesses
The limitation of checks to a cap of 30,000 dinars poses a particular challenge to businesses with high transaction volumes. This change could also affect companies that rely on checks for frequent payments, such as travel agencies or merchants, who may see their practices disrupted.
Consequences for Commercial and Daily Payments
In Tunisia, it is common to use checks without specifying the beneficiary for routine transactions. This practice will now be prohibited, requiring users to specify a unique beneficiary, thereby preventing the reuse of the check in other transactions. This change marks a break with current practices.
The Role of Banks in Managing Bounced Checks
For checks with an amount less than 5,000 dinars, the bank is now required to cover the amount, unless it adheres to the Central Bank's platform. This platform, designed to manage provision checks, comes with obligations for banks. In the absence of adherence, the bank will be responsible for bounced checks.
The New Digital Verification Platform
As of February 2025, a digital platform will allow for the verification of check provisions and block the amount if necessary. However, this procedure may lead to delays for businesses that receive numerous checks daily, potentially requiring new hires to manage this process.
Alternative Payment Options to Ease the Pressure
The new regulation encourages the use of alternative payment options, such as bank cards or transfers, as well as salary assignment solutions for installment payments. These alternatives require increased collaboration between businesses, banks, and their clients to avoid relying on checks.
Risks and Expectations for a Performing Platform
To avoid delays, the platform must guarantee real-time updates on check provisions. The Central Bank will also publish a list of banks adhering to the platform every six months, offering greater transparency on sector actors.
Economic and Judicial Consequences of the Reform
Statistics from the Ministry of Justice reveal that, to date, fewer than 500 people are imprisoned for bounced checks, while 10,000 others have fled the country to avoid justice. This reform, although essential for modernizing the financial system, could lead to significant economic and judicial difficulties for businesses that rely on checks in their transactions.
A Challenging Transition Period for Tunisian Businesses
The first months of the law's application will be complicated, especially for businesses that rely on post-dated checks and guarantees. These businesses will need to cease this practice and find solutions for already-issued checks. In the short term, the adaptation period may see some businesses suffer financial losses or even bankruptcy.
A Future Without Checks: What Perspectives?
In the long term, Mr. Gadhoum believes that the use of checks could disappear, giving way to more secure and regulated payment methods. However, for banks, this transition could lead to a loss of revenue, while businesses will need to rethink their practices to avoid disruptions.
