The Central Bank of Iran Tuesday enforced more segments of the new check rules broadening the scope of cashier’s checks.
A cashier's check is a check guaranteed by a bank, drawn on the bank's own funds and signed by a cashier. Cashier's checks are treated as guaranteed funds because the bank, rather than the purchaser, is responsible for paying the amount. They are commonly used for real estate and brokerage transactions.
According to a press release on the CBI website, all cashier checks issued as of Tuesday must be registered with Sayyad system and receive a special 16-digit ID number.
Sayyad is a system designed to run a credibility check on account holders wanting to write a check. The system is accessible to check holders via bank internet gateways, cellphone applications, short message service (SMS) and ATMs.
The new check law came into force in March 2021 to help improve transparency, curb bad checks and discourage fraud.
As per the provisions of the law dubbed "Amendment to Check Issuance Law", if a bad check is definitive due to insufficient funds, courts are authorized to seize the amount from other assets of the check’s signatory.
The amended law penalizes those who acquire a checkbook through fraud and bank staff who violate the law.
Depriving checkbook-holders the right to bank loans and other financial facilities are also enshrined in the amended law. Access to checkbooks has been made hard and the credibility of applicants is thoroughly verified.
