The Criminal Code (Amendment) Law 143(I)/2026, enacted on 30 October 2026, introduces amendments to Section 305A of the Criminal Code, Cap. 154, which governs the issuance of cheques without sufficient funds.
The amendments primarily concern the electronic processing of dishonoured cheques, the recording of reasons for non-payment and the recognition of electronic banking records as evidence before the courts.
Key Amendments to Section 305A
The principal changes introduced by Law 143(I)/2026 concern the procedure for recording the dishonour of cheques presented electronically and the evidential treatment of the relevant banking records.
Under the amended Section 305A(4), where a cheque is presented electronically, the credit institution on which it was drawn is required to communicate to the presenting credit institution the actual reason for non-payment, namely insufficient available funds, closure of the relevant account or an instruction to stop payment, together with the date of presentation.
The amended provision expressly allows the presenting credit institution to record this information electronically where the cheque has been presented through a digital image of both sides, as an alternative to the traditional procedure of stamping or making a notation on the original cheque. This development accommodates the use of electronic cheque processing while preserving the statutory requirement to record the circumstances of non-payment.
Of particular significance is the amendment to Section 305A(4)(c), which expressly recognises electronically recorded information as admissible evidence before the courts. Accordingly, both the physical stamping or notation on the original cheque and the electronic recording of the reason for non-payment and the date of presentation are admissible as evidence in judicial proceedings.
Furthermore, the relevant records constitute a rebuttable presumption as to the accuracy of their contents. This means that the information recorded by the credit institution is presumed to be correct unless evidence to the contrary is presented. The amendment therefore extends the statutory evidential recognition to electronic records without preventing their accuracy from being challenged before the courts.
The amended provision also addresses the issue of banking confidentiality by expressly clarifying that compliance by a credit institution with its obligations under Section 305A(4) does not constitute a breach of banking secrecy or the confidentiality of information relating to its customers’ accounts. This clarification provides greater legal certainty for credit institutions when communicating and recording information concerning dishonoured cheques in accordance with their statutory obligations.
In addition, the amendment introduces a new subsection (9) to Section 305A, defining a “digital image” as a faithful and clear digital representation of the original cheque. The introduction of this definition clarifies the nature of the electronic representation contemplated by the legislation and supports the application of the amended recording procedure.
Legal Significance of the Amendments
The amendments introduced by Law 143(I)/2026 represent a significant step towards modernising the legal framework governing the processing of dishonoured cheques in Cyprus, particularly in light of the increasing use of electronic banking procedures.
By expressly recognising electronic records and clarifying their evidential status, the legislation facilitates the use of digital cheque processing while maintaining the legal safeguards applicable to proceedings involving dishonoured cheques. The recognition of such records as admissible evidence is particularly relevant where the reason for non-payment or the date of presentation becomes an issue in legal proceedings.
Importantly, the amendments do not alter the substantive requirements for establishing criminal liability under Section 305A. Their principal effect is procedural and evidential, ensuring that electronically recorded information may be relied upon in legal proceedings, subject to the right to challenge its accuracy.
The revised framework therefore brings the relevant provisions of the Criminal Code into closer alignment with modern banking practices, while preserving the existing principles governing criminal liability and the assessment of evidence.
For further information or legal assistance regarding compliance with the above requirements, please do not hesitate to contact us at info@kpklegal.com.
Disclaimer: This article is provided for informational purposes only and does not constitute legal advice. Readers are advised to seek professional legal advice in relation to their particular circumstances.
Author
Maria Hadjisavva Senior Advocate, KPK Legal