The final Law Update of 2022 is here, and it’s packed full of articles. The double edition features two focus areas, first is a spotlight on Energy and Resources and second we feature a collection of articles on Transport and Logistics. The developments occurring in these sectors in the MENA region are unprecedented and our lawyers cover vast themes for you.
The Energy and Resources focus features topics such as diversifying energy resources, solar PV, mining in the Middle East, renewable energy and green hydrogen. From a transport perspective, we draw attention to the Bahrain metro project, discuss the challenges and remedies associated with the repossession of an aircraft, and there is advice on what to consider should a party vary the terms of a shipping contract.
This edition navigates you through updates from across jurisdictions such as, Oman, Jordan, Saudi Arabia, Egypt, Iraq, Qatar, and the UAE. Each article is timely and provides insights into legal issues and cases that are affecting these sectors across the region.Read the full edition
On 3 July 2022, Law No.4 of 2022 concerning the regulation of the use of cash in transactions (the “Cash Transactions Law”) was published in the Official Gazette No. 7 of 2022 which is effective from the date of its publication. In our client alert on this topic issued earlier this month, we had mentioned that the types of transaction expected to be covered under the Cash Transactions Law was to be determined by the Council of Ministers.
The purpose of this client alert is to update our readers that the Council of Ministers has now issued a list of transactions that would fall under the ambit of the Cash Transactions Law.
The Council of Ministers has issued Decision No. 10 of 2022 (the “Decision”) identifying certain categories of transactions in which use of cash exceeding QAR 50,000 (approximately US$ 13,732.5) is prohibited. These are as follows:
Following the issuance of the Decision, the Qatar Central Bank has also issued a formal statement on its official social media platform confirming that it would be prohibited to use cash in transactions that exceed the value of QR50,000 in respect of the abovementioned transaction categories and relevant outlets.
As previously mentioned in our client alert, it would not be possible to use cash to pay for or in connection with the abovementioned transactions if the overall value of the transaction exceeds QAR 50,000. Instead, alternate payment methods such as cheques, bank transfers and bank cards must be used.
As a reminder, the Cash Transactions Law imposes stringent penalties for non-compliance, including financial penalties of up to 60% of the total value paid in cash if the transactions are intentionally split and up to QAR 1,000,000 if the relevant trading outlets fail to maintain record of all receipts and documents supporting the non-cash modes of payment.
Our recommendation to the relevant business and trading outlets would be to start an awareness campaign to inform their on-ground staff about this prohibition and to implement proper record keeping (if not already in place) for non-cash transactions undertaken at the outlet. The Cash Transactions Law allows for a period of six (6) months (from 3 July 2022) to ensure compliance with the law.
If you have any questions about this announcement or would like our advice on any implementation steps, please contact us.