BoG imposes stiffer penalties for issuing dud cheques

The Bank of Ghana (BoG) has unveiled a revised sanctioning framework for the issuance of dud cheques, introducing stiffer penalties to curb the rising tide of such infractions within the banking sector.

In a statement issued on Monday, 14 October 2025, the central bank expressed grave concern over the persistent increase in dud cheque incidents, despite previous warnings and enforcement efforts.

“The Bank of Ghana has observed with grave concern the high issuance of dud cheques by some customers of banks and SDIs. This development has consequential effects on the acceptance of cheques for transactions,” the statement said.

Under the new regime, banks and Specialised Deposit-Taking Institutions (SDIs) are mandated to impose financial penalties, report offenders, and enforce temporary restrictions on customers who issue dud cheques.

For a first offence, the bank or SDI must impose a levy equivalent to 10 per cent of the cheque’s face value and issue a formal warning to the customer. The offender must also be reported to the credit reference bureaus and the Bank of Ghana.

The institution is further required to place the customer under surveillance for a minimum of one year, with the warning documented via SMS, email, or any official communication channel. The notice must clearly outline the consequences of repeat offences.

A second offence committed within one year of the first attracts a 15 per cent levy on the cheque’s value, another formal warning, and renewed reporting to the BoG and credit bureaus.

A third offence within the same one-year period incurs a 20 per cent levy, along with additional punitive measures. In such cases, the BoG shall ban the customer from issuing cheques in Ghana for a minimum of three years.

During the ban period, affected customers may still receive cheques and funds into their accounts and conduct electronic transactions, but will be barred from accessing new credit facilities for one year. All banks and SDIs will be formally notified of the ban.

Upon receiving the BoG’s notification, the drawee bank or SDI must recall all unused cheque books within five working days and refrain from issuing new ones until the sanction is lifted.

The central bank further stated that customers who fail to return unused cheque books within ten days will be reported to the BoG, which may subsequently ban them from operating any current account.

Additionally, such offenders will be listed in a Directory of High-Risk Cheque Issuers, to be maintained by the BoG as a reference for all financial institutions.

According to the central bank, the revised measures aim to restore confidence in cheque transactions, strengthen discipline within the financial system, and promote a culture of accountability among account holders.