The Bank of Ghana (BoG) has tightened sanctions against the issuance of dud cheques, introducing steeper financial penalties, restrictions on access to credit, and possible publication of repeat offenders as part of efforts to protect confidence in the country’s payment system.
Under a new directive, customers who issue dud cheques for the first time will pay a penalty equivalent to 10% of the cheque’s face value. For second and third offences committed within a year of the initial breach, levies of 15% and 20%, respectively, will be applied.
The central bank stated that the move had become necessary because it had observed, with “grave concern”, the “high issuance of dud cheques” by some bank customers and Specialised Deposit-Taking Institutions (SDIs), a practice it noted had “consequential effects” on the acceptance of cheques in commercial transactions.
BoG indicated that the measures are intended “to discourage this malpractice” and “sustain confidence in the payment system” by ensuring stricter compliance across the banking industry.
Customers who issue dud cheques for a third time within one year of the first offence will face more severe sanctions. The Bank of Ghana said such individuals will be barred from issuing cheques in Ghana for a minimum period of three years.
Although affected customers may continue to receive funds into their accounts and conduct other electronic transactions, they will be prohibited from accessing new credit facilities from the banking system for one year. The central bank said it would notify all banks and SDIs of the ban.
Banks and SDIs will also be required to notify sanctioned customers within five working days, recall all unused cheque books and refrain from issuing new cheque books until the sanctions are lifted. The Bank of Ghana added that it may publish the names of “third time offenders” to reinforce compliance.
The notice further stated that customers who fail to return unused cheque books within 10 working days after notification may face additional consequences. Such individuals could be banned from operating current accounts and included in a “Directory of High-Risk Cheque Issuers” to be established by the central bank as a reference point for the banking industry.
The directive also places additional compliance obligations on banks and SDIs. Financial institutions are required to continue submitting information on dud cheque issuers to Credit Reference Bureaus in line with the Credit Reporting Act, 2007 (Act 726), while monthly returns on dud cheques must be submitted to the Bank of Ghana by the 10th day of the following month using the prescribed format.
The central bank emphasised that institutions must file “Nil Reports” for periods in which no dud cheques are recorded. It warned that failure to submit returns, or the submission of “inaccurate returns” or “incomplete returns”, would attract sanctions under the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930).
BoG further directed banks and SDIs to display copies of the notice prominently in all banking halls and on their official websites. It cautioned that any institution that fails to comply with the directives would be sanctioned in accordance with Section 92(8) of Act 930.
