Central Bank of Tunisia Circular No. 2024-14 of November 21, 2024

1
Tunis, November 21, 2024
Central Bank of Tunisia Circular No. 2024-14
Subject: Bank obligations regarding check transactions.

The Governor of the Central Bank of Tunisia,
Having regard to the provisions of the Commercial Code regarding checks, as amended and supplemented by subsequent texts, notably Law No. 2024-41 of August 2, 2024; Having regard to Circular No. 2007-18 of July 5, 2007 to credit institutions regarding the application of provisions of the Commercial Code on checks, as amended by subsequent texts; Having regard to the opinion of the compliance control committee No. 2024-14 dated November 11, 2024, as provided by Article 42 of Law No. 2016-35 of April 25, 2016, fixing the status of the Central Bank of Tunisia. Decides:

Article 1 - This circular sets out in the annex the obligations and procedures incumbent upon banks regarding check transactions and the management of related payment incidents, in accordance with the provisions of the Commercial Code, as amended and supplemented by Law No. 2024-41 of August 2, 2024.
Article 2 - This circular repeals and replaces all prior contrary provisions, notably Circular No. 2007-18 of July 5, 2007, and enters into force from the date of its publication.

THE GOVERNOR,
FETHI ZOUHAIER NOURI

2 Appendix to the Central Bank of Tunisia Circular No. 2024-14 of November 21, 2024
CHAPTER ONE
ON THE PREVENTION OF CHECK PAYMENT INCIDENTS

Section 1 - On the issuance of check forms.
The delivery of check forms is of paramount importance in preventing payment incidents related to checks. This interest is even greater:

1. On the one hand, except for checks drawn on foreign currency or convertible dinar accounts, the drawee bank is required under paragraphs 4 and 5 of Article 374 of the Commercial Code to pay, regardless of the absence or insufficiency of funds, any check for an amount less than or equal to twenty dinars issued on a form delivered by it; and
2. On the other hand, every bank must pay under Article 412 bis of the Commercial Code, up to 5,000 dinars, even in case of absence or insufficiency of funds, the amount of any check drawn on it by means of forms delivered to the drawer:

• either when it has not inquired with the Central Bank of Tunisia about the account holder's status before delivering check forms for the first time,
• or when the delivery of check forms to the drawer occurs despite a prohibition affecting the latter that is known to the bank.

3. Every bank is required to pay any check without funds if its amount is equal to or less than 5,000 dinars, provided it has not adhered to the electronic platform for check transactions by the date of its operational launch, in accordance with Article 410 septies (new) of the Commercial Code.

In this case, it may not raise any exceptions against the beneficiary, except for the following formal irregularities:

• absence of the drawer's signature,
• absence of a maximum value on the check,
• non-indication of the beneficiary's name,
• the amount of the check exceeds the maximum value affixed to it,
• the check is presented for payment 8 working days after its validity date expires,
• the check shows apparent signs of forgery.
  Every bank is required to take necessary measures to prevent the issuance of checks without funds by its clients before delivering check forms for the first time and each time clients make a request. These measures are determined by each bank based on the criteria listed in Article 410 (new) of the Commercial Code. The bank is also obligated to apply all other measures and procedures established for this purpose by the Central Bank of Tunisia. These measures must be recorded in writing, and the bank must ensure its information system is updated in accordance with these measures. Every bank must apply the measures provided for in Article 410 (new) of the Commercial Code within a period not exceeding 6 months from the date of publication of Law No. 2024-41 of August 2, 2024, in the Official Journal of the Tunisian Republic.

Paragraph 1 - Information regarding the identification of the account holder and their authorized representative.
Upon opening a checking account, the bank must obtain from the account holder the information necessary for identification, taking into account current legal and regulatory provisions on customer identification and identity verification, notably Circular No. 2017-08 of September 19, 2017, regarding internal control rules for managing money laundering and terrorist financing risk, as amended and supplemented by Circular No. 2018-09 of October 18, 2018.

Paragraph 2 - Information regarding the status of the account holder and their authorized representative.
Before delivering check forms to the account holder, the bank must inquire about the requesting client's status either:

• with the unpaid checks center of the Central Bank of Tunisia.
  The consultation with the unpaid checks center operates in accordance with the operational rules specific to this center's data exchange system.
  The information provided by the unpaid checks center covers the following elements:
• the status of the person subject to consultation (no recorded payment incidents, prohibited or not prohibited);
• the number of unregularized payment incidents; and
• the number of regularized payment incidents for which the date of issuance of non-payment certificates dates back to three years at most from January 1 of the current year.
• or in writing with the Central Bank of Tunisia for persons holding a foreign identity document or residence permit.
  The bank must in this case:
• prepare the consultation request in accordance with Form No. 1 of this circular;
• centralize at its headquarters consultation requests from its branches;
• submit the request to the Central Bank of Tunisia's headquarters against receipt; and
• collect the response at the Central Bank of Tunisia's headquarters within three working days following the date of submission.
  The bank may send consultation requests by any other means fixed by the Central Bank of Tunisia and collect the response using the same means within three working days following the date of dispatch.

The bank must, in all cases, retain a copy of the account holder's identity document or extract from the national business register.
The bank must also retain references to the electronic consultation and may, if applicable, obtain certification from the Central Bank of Tunisia upon request in accordance with Form No. 2 of this circular.

Paragraph 3 - Check forms delivered to clients from the entry into force of Article 410 bis (new) of the Commercial Code.
From the entry into force of Article 410 bis (new) of the Commercial Code, i.e., 6 months after the publication date of Law No. 2024-41 of August 2, 2024, in the Official Journal:
1- banks may only deliver to their clients checks bearing a general crossing.
However, the bank may, exceptionally and upon client request, deliver uncrossed check forms when such a request proves necessary.
In all cases, the delivery of uncrossed checks remains exceptional and must be based on serious grounds dictated notably by the nature of the client's transactions and needs.
The banks must also set, for a fixed duration, an overall ceiling for any uncertified checkbook, based on each client's solvency in accordance with Article 410 (new) of the same Code.
The overall ceiling indicated on the checkbook is divided, upon client request, into equal or variable values across the number of checks, without the maximum value affixed to any check exceeding thirty thousand (30,000) dinars.
The checks delivered must also bear the following details:

• validity period, which cannot be less than six (6) months from the date of printing, with the expiration date affixed at the bottom of each check;
• electronic verification elements;
• quick response code;
• necessary security elements.
  2- any instrument lacking one of the mandatory details regarding its maximum value, validity period, designation of the beneficiary, or bearing an amount exceeding its maximum value, or presented for payment 8 working days after the expiration of its validity period, is no longer considered a check under Article 410 bis (new) of the Commercial Code. Given the legal effects provided by this article for these instruments, the drawee bank is required to refuse their payment in accordance with the procedure described in the first subsection of the first section of Chapter Two of this circular, excluding any other measure.

Section 2 - On prohibitions on holding and using check forms.
The proper execution of prohibitions on holding and using check forms (other than those reserved for direct withdrawal or certified provision withdrawal) requires, prior to that, the recording in a special register of the serial numbers of blank check forms and their delivery date to the account holder, as well as the updating of the list of prohibited persons. Subject to the sanctions provided in Article 412 bis of the Commercial Code, banks are invited to scrupulously respect both provisional legal prohibitions and judicial prohibitions on using check forms.

Paragraph 1 - On provisional legal prohibitions on holding and using check forms.
Article 410 ter bis (new) of the Commercial Code provides that any drawer of a check without funds is legally prohibited, from the date of issuance of the non-payment certificate, from using all check forms in their possession or that of their authorized representatives, other than those reserved for direct withdrawal or certified provision withdrawal issued by banking institutions, and is required to return them to the concerned banks.
To this effect:

1. The drawee bank must:

• refrain from issuing new blank check forms to the drawer; and
• summon, in the rejection notice issued in accordance with Form No. 3 of this circular, to refrain from using all blank check forms in their possession or that of their authorized representatives (other than those reserved for direct withdrawal or certified provision withdrawal issued by the drawee bank or any other bank), and to return them to the concerned banks.

2. Any other bank with which the drawer of the check without funds holds an account must, upon receiving the prohibition notified by the Central Bank of Tunisia, refrain from issuing them blank check forms.

Paragraph 2 - On the management and communication by the Central Bank of Tunisia of provisional legal and judicial prohibitions.
The Central Bank of Tunisia ensures, at the unpaid checks center, the management of data regarding provisional legal prohibitions and judicial prohibitions on holding and using check forms, as well as those regarding the lifting of prohibitions.
Consequently, banks must continue to refrain from issuing blank check forms until the lifting of prohibitions is duly notified by the Central Bank of Tunisia. The list of persons subject to prohibition is updated according to existing procedures.
The Central Bank of Tunisia only takes into account payment incidents of checks reported in accordance with prevailing legal and regulatory conditions. Banks are responsible for rejected payment incidents automatically due to non-compliance with technical requirements set forth in the data exchange system and information center guide.

Paragraph 3 - On violation of provisional legal prohibitions and judicial prohibitions.
The prohibitions on holding check forms, whether legal or judicial, are analyzed not as incapacity but as forfeiture. It follows that any check issued by a person prohibited from using checks must be paid by the drawee bank if the account status permits payment.
Whether the check has been paid or not, the violation of the prohibition on holding check forms constitutes, for both the drawer and the authorized representative who issues a check despite knowing about the prohibition affecting their principal, an offense punishable by one year of imprisonment and a fine of five hundred dinars. Accordingly, the drawee bank must, within two working days in banks, inform the Central Bank of Tunisia of any check payable from its counters issued either directly by the drawer in disregard of a prohibition on using check forms, or by an authorized representative acting on behalf of their principal who is subject to the prohibition.

Section 3 - On the summons to refrain from using check forms and their recovery in case of bank account closure.
The banks are required to summon, by any means leaving a written record, holders of indefinite-term current accounts who have not conducted any operations on these accounts for 3 consecutive months despite their debit status, to refrain from using check forms in their possession or that of their authorized representatives. This same obligation applies to holders of deposit accounts closed in accordance with Article 674 of the Commercial Code. The non-compliance with these obligations is penalized under the fourth bullet point of Article 412 of the Commercial Code, which provides that a bank that has not notified the account holder, in case of account closure, to refrain from using all check forms in their possession or that of their authorized representatives and to return them, is fined between 500 dinars and 5,000 dinars.

CHAPTER TWO
ON THE ESTABLISHMENT OF CHECK PAYMENT INCIDENTS

The procedure for establishing check payment incidents differs depending on whether the rejection of the check is motivated by a formal defect or by reasons related to funds, or by the drawer's opposition.
It is recalled, in accordance with Articles 371 and 374 of the Commercial Code, that if funds exist, the drawee bank is obligated to pay the check even if it was presented after the presentation deadline or bears a date subsequent to its presentation.
It is also recalled that, under Article 410 ter (new) of the Commercial Code, and from the operational launch of the electronic platform, the drawee bank is required to pay the amount of the check, regardless of its value, if the beneficiary was previously notified of the balance reservation in their favor via the platform and it proves, upon presentation for payment, that funds are absent or insufficient.

Section 1 - On the rejection of checks for formal defects.
Sub-section 1 - Absence of mandatory details on the check provided by Article 410 bis (new) of the Commercial Code.
For new checks used after February 2, 2025, and when the absence of one of the mandatory details provided by Article 410 bis (new) of the Commercial Code is established, the presented instrument is not considered a check. In this case, the drawee bank must refuse payment of the check by a simple "slip" (papillon) handed to the beneficiary without observing any other procedure and without reserving its amount in favor of the beneficiary. The drawee bank refuses payment by a simple "slip" according to the following procedures:

• In case of check presentation for payment at counters: rejection by a simple "slip" handed to the beneficiary accompanied by the original check after retaining a copy. The "slip" contains information necessary to identify the drawer and account holder, including address and references of the national identity card, passport, or residence permit.
• In case of check presentation for payment within the compensation system: the "slip" is transmitted to the presenting bank in the form of an electronic or written record provided for this purpose within said system, on the working day following the date of processing by the electronic compensation system of the record of the check presented for payment.
  Upon receiving the electronic or written record, the presenting bank:

• proceeds to print the "slip" in accordance with received information;
• records the rejection by clearly stating on the back of the check the reason and date of rejection;
• sends to the beneficiary the "slip" bearing the authorized bank stamp and signature, along with the mention "for the account of the drawee bank" accompanied by the original check, on the next working day following the date of processing by the compensation system of the electronic or written record regarding the rejection.
  However, the presenting bank must not send the "slip" to the beneficiary if the rejection is motivated solely by a technical failure attributable to the compensation system.

Sub-section 2 - Rejection of checks for formal defects other than mandatory details under Article 410 bis (new) of the Commercial Code.

• In case of rejection for a formal defect (non-compliant signature, absence of indication of date or place of issuance, irregular endorsement,...), and whether they are checks used before the publication of Law No. 2024-41 and remaining valid until February 2, 2025, or new check forms, the drawee bank must refuse payment of the check and reserve its amount in favor of the beneficiary.
• Regarding the refusal of payment, the drawee bank issues a simple "slip" following the same procedures provided by the first subsection of this section.
  However, if the drawee bank finds that the reason for rejection due to a formal defect is also associated with a reason related to funds, it must additionally observe the procedures for rejecting checks due to fund-related reasons as described in Section 2 of this chapter.
• Regarding the reservation of funds, the drawee bank applies it in favor of the beneficiary during:
• the entire remaining validity period of the check, plus eight working days in banks, for new check forms put into circulation after February 2, 2025, in accordance with Article 410 ter (new) of the Commercial Code;
• a period of 3 years from the date of expiration of the presentation deadline, in accordance with Article 398 of the Commercial Code, for check forms remaining valid until February 2, 2025, provided the drawee bank has knowledge of the transfer of ownership of funds to the beneficiary.

Section 2 - On refusal of payment for reasons related to funds.
Under Article 410 ter bis (new) of the Commercial Code, when refusal of payment is related to the absence, insufficiency, or unavailability of funds resulting from a reason other than the drawer's opposition (garnishment, administrative opposition, freezing of funds by judicial or administrative decision,...), the bank is required to invite the drawer to fund their account or make the funds available.

Sub-section 1 - On the invitation of the drawer to fund their account or make funds available.
Under Article 410 ter bis (new) of the Commercial Code, the drawee bank refusing payment of a check wholly or partially due to absence, insufficiency, or unavailability of funds must:
*when the check is presented directly at its counters:

• immediately note on the back of the check the date of presentation and request the beneficiary's address and contact details to inform them, if necessary, that funds have been reconstituted or made available by the drawer and, where applicable, to notify them, failing regularization, of the non-payment certificate and original check. The drawee bank must send a preliminary rejection notice to the drawer, even if the beneficiary refuses to hand over the check against receipt.
• pay the existing partial funds to the beneficiary or reserve them in their favor.
• send on the same day of presentation a preliminary notice to the drawer via the electronic platform from its operational launch or by any means leaving a written record (telegram, fax, email,...), inviting them to fund their account or make funds available within seven (7) working days in banks, and summoning them to refrain from using check forms in their possession or that of their authorized representatives (other than those used for direct withdrawal or certified provision withdrawal) delivered by banking institutions, and to return them to the concerned banks.
  The notice sent to the drawer is prepared in accordance with Form No. 3 of this circular.
• retain proof of dispatch of the notice to the drawer.
  *in case of check presentation within the compensation system:
  In addition to the obligations provided in the first three bullet points above, the drawee bank must send via said system to the presenting bank the electronic or written record regarding the preliminary rejection notice sent to the drawer, prepared in accordance with the provided design drawing. This record is sent on the working day following the date of processing by the electronic compensation system of the electronic record regarding the presentation of the check for payment, regardless of its place of payment.

S