BoG introduces tougher sanctions for issuance of dud cheques

The Bank of Ghana (BoG) has unveiled a new set of stringent sanctions against customers who issue dud cheques, citing growing concerns about the practice and its impact on the country’s payment system.

In Notice No. BG/GOV/SEC/2026/12 issued on June 24, 2026, the Central Bank said it had “observed with grave concern the high issuance of dud cheques by some customers of Banks and Specialised Deposit-Taking Institutions (SDIs).”

According to the Bank, the development has “consequential effects on the acceptance of cheques for transactions” and threatens public confidence in the financial system.

“To discourage this malpractice, and to sustain confidence in the payment system, the Bank of Ghana hereby issues this Notice,” the statement said.

Under the new sanctions regime, a customer who issues a dud cheque for the first time will pay a penalty equivalent to 10 percent of the cheque’s face value and receive a warning notification from the bank.

The notice states that “the bank or SDI shall levy an account holder who issues a dud cheque for the first time 10% of the cheque’s face value and issue a Warning Notification to the affected customer.”

Customers who commit a second offence within one year will be surcharged 15 percent of the cheque value, while third-time offenders will be charged 20 percent and face additional regulatory sanctions.

The Bank of Ghana said that where a customer issues a dud cheque for a third occasion within one year, “the Bank of Ghana shall ban such a customer from issuing cheques within the country for a minimum period of three years.”

In addition to the cheque-writing ban, affected customers will be prohibited from obtaining new credit facilities from the banking system for one year.

“The Bank of Ghana shall ban such a customer from accessing new credit facilities from the banking system for one year,” the notice emphasized.

The Central Bank further disclosed that it may publicly disclose the identities of repeat offenders, noting that “the Bank of Ghana may publish the list of the third time offenders.”

The measures took immediate effect on June 24, 2026, and supersede previous directives issued in 2021 and 2025.