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Dubai: People with a history of issuing cheques which bounce can now be quickly traced, thanks to a new pact between Dubai Police and Emcredit.
A data sharing agreement was signed on Monday between Dubai Police and Emcredit, the country's first private credit information company.
The agreement formalised an earlier pact between the two partners, which helped develop a credit reporting tool providing comprehensive and up-to-date records on defaulted cheques reported to Dubai Police.
The pact will also pave the way to develop other systems such as fraud detection solutions in future.
Major General Khamis Mattar Al Mazeina, Deputy Commandant General of Dubai Police, said financial fraud is a reality in the global financial world. Thus, adopting industry best practices, creating regulatory processes and systems and developing tools and technology can help tackle this menace.
"With the increase of cheque bouncing cases in the country, Dubai Police found that the availability of such a financial detection system is one of the critical demands to protect the UAE market," said Al Mazeina.
Emcredit will able to provide its subscribers access to police records of defaulted cheques issuers.
Dubai Police will provide the company with details of people and companies involved in bounced cheques cases, from court and criminal investigation record, through an electronic network. This means the subscriber will be able to receive reports from the company in less than a minute.
Ali Ebrahim, managing director of Emcredit, said the agreement "sets the ground for future co-operation that will enable Emcredit to develop enhanced decision-support and fraud detection tools. Such partnerships will strengthen the UAE's financial system against attempted fraud and boost confidence and stability in the country's financial services industry."
Subscription is only open to commercial entities. Individuals can ask for reports on their own credit history but they have to provide a valid identification before processing the report.
So far, nine banks have subscribed to the service as well as a number of real estate companies. Emcredit has issued some 23,000 information reports so far.
Operation: How it works
- Dubai Police provide names and details of companies and peoplewho are involved in defaulted cheques in court or the Criminal Investigation Department through an electronic link with Emcredit.
- Emcredit stores the information in its data system.
- Subscribers enquire about the credit worthiness of any person or company through Emcredit.
- In less than a minute, Emcredit issue a report with the person'scomplete history of issuing cheques which bounced later.
- The details of each and every case are given in the report, includingthe amount of the bounced cheques, when the complaint was lodgedand who lodged it.
Subscription
Only commercial entities can subscribe to the service. There are two different types of payment - either through an annual subscription fee, after which the company can ask for limitless number of reports, as well as a prepaid system, where the company buy in advance a certain amount of credit to be used against the reports.
Have you heard of any cases involving financial fraud? Do you think this move will help reduce such cases? Or is it an intrusion of privacy? Fill in the form bellow to send your comments.
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