Cheque in Morocco: Issuance, Provision and Criminal Penalties

In brief: The cheque in Morocco is governed by Articles 239 to 328 of the Commercial Code. It is a demand payment instrument that requires the existence of a prior and available provision (Art. 241). The cheque must contain mandatory particulars (Art. 239) and be presented for payment within one year for cheques issued in Morocco (Art. 268). Issuing a bounced cheque is severely punished: 1 to 5 years imprisonment and a fine of 2,000 to 10,000 MAD (Art. 316), along with a 10-year banking ban. However, a regularization procedure (Art. 312-313) allows criminal prosecution to be avoided.

Formal requirements of the cheque (Art. 239)

The cheque is a written instrument by which the drawer orders the drawee (the bank) to pay on demand a specified sum to the beneficiary. Article 239 of the Commercial Code lists the mandatory particulars that the cheque must contain:

The designation “cheque” inserted in the body of the instrument
An unconditional order to pay a specified sum
The name of the drawee (the banking institution)
The indication of the place of payment
The indication of the date and place of creation of the cheque
The signature of the drawer

The absence of any of these particulars renders the instrument null as a cheque. However, in the absence of a place of payment, the cheque is payable at the place designated next to the drawee’s name.

Demand payment character

The cheque is always a demand payment instrument: it is payable upon presentation, regardless of the date written on the instrument. Any provision to the contrary is deemed unwritten. A post-dated cheque is payable on the day of its actual presentation.

Provision of the cheque (Art. 241)

Obligation of prior and available provision

Article 241 of the Commercial Code establishes the fundamental principle of provision: the drawer must constitute the provision at the time of issuance of the cheque. The provision must be:

Prior: it must exist at the time of issuance
Available: the drawer must be able to freely dispose of it
Sufficient: it must cover the full amount of the cheque

The provision consists of the drawer’s claim against the drawee (credit balance of the bank account). It is this provision requirement that distinguishes the cheque from term commercial instruments such as the bill of exchange.

Ownership of the provision

The provision of the cheque belongs to the holder from the moment the instrument is issued. This rule has an important consequence: in the event of judicial reorganization or liquidation of the drawer, the holder of the cheque has an exclusive right to the provision.

Types of cheques

The Moroccan Commercial Code recognizes several varieties of cheques, each offering specific guarantees:

Crossed cheque

A crossed cheque can only be paid to a banker or to a client of the drawee. The crossing is materialized by two parallel lines drawn on the front of the cheque. It can be general (between the lines, no mention or the mention “banker”) or special (the name of a designated banker appears between the lines). A general crossing can be converted to a special crossing, but the reverse is not possible.

Certified cheque

A certified cheque is a cheque on which the drawee bank affixes the mention “certified” with its signature, attesting to the existence of the provision and blocking it for the benefit of the holder. Certification guarantees the existence of the provision during the presentation period. It is a widely used security instrument in real estate transactions and public procurement.

Bank cheque

A bank cheque is issued directly by a banking institution, drawn on its own funds. It offers the strongest guarantee since the bank itself commits to payment. It is commonly required for high-value transactions.

Visa cheque

A visa cheque bears the visa of the drawee bank, which simply attests to the existence of the provision at the time of the visa, without blocking it. The provision may therefore be consumed between the visa and the presentation for payment.

Circular cheque

A circular cheque is a cheque issued by a credit institution and payable at all branches of that institution or its correspondents.

Endorsement of the cheque (Art. 254)

A cheque transferable by endorsement follows the same rules as a bill of exchange. Endorsement transfers all rights arising from the cheque. Endorsement may be transfer (transfer of ownership), by procuration (collection mandate) or pledge (security interest).

Presentation for payment and deadlines (Art. 268)

Presentation deadlines

Article 268 of the Commercial Code sets the deadlines for presenting the cheque for payment:

20 days for cheques issued and payable in Morocco in the same locality
60 days for cheques issued outside Morocco and payable in Morocco
A cheque issued in Morocco must in any event be presented within a maximum period of one year from the date of issuance

After the presentation deadline, the holder loses their recourse against endorsers and the drawer (if the provision has disappeared without the drawer’s fault). However, the drawee may still pay the cheque as long as the one-year period has not expired.

Opposition to payment

Opposition to payment of a cheque is only permitted in cases strictly listed by law:

Loss of the cheque
Theft of the cheque
Fraudulent use of the cheque
Judicial reorganization or liquidation of the holder

Opposition for other reasons (commercial dispute, etc.) is prohibited and exposes the person making the opposition to penalties.

Bounced cheque: criminal penalties (Art. 316)

Offence of issuing a bounced cheque

Issuing a cheque without sufficient funds constitutes a criminal offence severely punished by Article 316 of the Commercial Code. The following are punishable:

Issuing a cheque without prior and available provision
Issuing a cheque with insufficient provision
Withdrawing all or part of the provision after issuance
Instructing the drawee not to pay outside the legal cases of opposition

Penalties provided

The penalties provided by Article 316 are as follows:

Imprisonment of 1 to 5 years
Fine of 2,000 to 10,000 MAD
Banking ban of 10 years: the issuer is registered in the central file of Bank Al-Maghrib and is prohibited from issuing cheques at all banking institutions

In the event of repeat offence, the imprisonment and fine penalties are doubled.

Certificate of refusal of payment

In the event of refusal to pay a cheque due to insufficient or absent provision, the drawee bank issues the holder a certificate of refusal of payment (formerly called “certificate of non-payment”). This certificate constitutes proof of the lack of provision and serves as the basis for criminal and civil proceedings.

Regularization procedure (Art. 312-313)

Order to pay

Before any criminal prosecution, the drawee bank sends the issuer of the bounced cheque a notice to comply requesting them to regularize their situation. The issuer has 20 days to constitute the provision.

Regularization methods

Article 312 of the Commercial Code offers the issuer the possibility of avoiding criminal prosecution by carrying out regularization:

Constitution of sufficient provision for the payment of the cheque
Direct payment to the beneficiary, with delivery of a certificate to the drawer
Payment of a tax penalty to the Public Treasury

Regularization within the prescribed period extinguishes the public action and allows the issuer to recover the right to issue cheques, subject to payment of penalties.

Consequences of failure to regularize

In the absence of regularization within the 20-day period, the bank is required to:

Close the drawer’s account or withdraw cheque forms from them
Report the incident to Bank Al-Maghrib for registration in the central file of payment incidents
Inform the King’s Prosecutor for the purpose of criminal prosecution

Criminal reform and partial decriminalization

The Moroccan legislator has initiated a reflection on the partial decriminalization of bounced cheques, particularly for cheques of small amounts. This evolution aims to reduce the burden on courts — bounced cheque cases representing a significant proportion of criminal litigation — while maintaining a deterrent framework for serious fraud.

The legislative trend now favours civil and administrative penalties (banking ban, tax penalty) for first-level incidents, reserving criminal prosecution for cases of repeat offence or characterized fraud. Compliance with payment deadlines between traders remains an essential preventive alternative.

Upsilon Consulting, a member of the Order of Chartered Accountants, advises you on managing your payment methods and preventing cheque-related risks. Contact our experts for personalized assistance.

Frequently asked questions

Is a post-dated cheque valid in Morocco?

Yes, a post-dated cheque remains valid in Morocco. Since the cheque is a demand payment instrument, it is payable upon presentation to the bank, regardless of the date written on the instrument. The bank is required to pay it immediately if the provision exists. Post-dating therefore has no legal effect on the “on demand” character of the cheque, but it may constitute an offence if it aims to circumvent the obligation of prior provision.

What remedies does the beneficiary of a bounced cheque have?

The beneficiary of a bounced cheque has several remedies. On the criminal level, they may file a complaint with the King’s Prosecutor on the basis of the certificate of refusal of payment. On the civil level, they may apply to the court to obtain payment of the cheque amount, plus interest and costs. They may also initiate an accelerated order to pay procedure before the president of the commercial court.

How to lift a banking ban for a bounced cheque?

To lift a banking ban, the issuer must regularize all unpaid cheques by constituting the provision or by paying the beneficiaries directly, then obtain the regularization certificates. They must then pay the corresponding tax penalty to the Public Treasury. The bank then proceeds to remove the registration from the central file of Bank Al-Maghrib. The lifting of the ban occurs after completion of all these formalities.

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This article is written by the team of chartered accountants at Upsilon Consulting, a firm registered with the Order of Chartered Accountants (OEC) of Morocco.

Need assistance with cash flow management and payment risk prevention? Contact Upsilon Consulting for tailored advice.

Cheque in Morocco: Issuance, Provision and Criminal Penalties | Upsilon Consulting