The Bank of Ghana (BoG) has announced a tougher set of sanctions aimed at curbing the persistent issuance of dud cheques, warning that both individuals and businesses who engage in the act will face severe financial and legal consequences, including bans and credit restrictions.
In a new directive—Notice No. BG/GOV/SEC/2025/31—issued on Monday, the central bank said it had “observed with grave concern the high incidence of dud cheques” being issued by some customers of banks and specialised deposit-taking institutions (SDIs), despite previous measures to discourage the practice.
Under Section 313(A) of the Criminal Offences Act, 1960 (Act 29), as amended, the issuance of a dud cheque — defined as a cheque drawn on an account without sufficient funds — is a criminal offence punishable by a fine or imprisonment of up to five years.
To reinforce compliance, BoG has revised its 2021 sanctions framework. Offenders will now face escalating penalties depending on the number of times they issue dud cheques within a one-year period.
New Sanctions Regime
First Offence: A 10% penalty on the cheque’s face value, accompanied by a formal warning and surveillance for at least one year.
Second Offence: A 15% penalty, another warning, and mandatory reporting to credit reference bureaus and the BoG.
Third Offence: A 20% penalty, reporting to the BoG, and a three-year ban from issuing cheques. Offenders will also be barred from accessing new credit facilities for one year.
The directive further requires banks to recall all unused cheque books from banned customers within five working days and prohibits them from issuing new cheque books until sanctions are lifted.
BoG also warned that customers who fail to return unused cheque books within 10 days will be added to a new “Directory of High-Risk Cheque Issuers”, which will serve as a reference for all financial institutions.
Speaking on the rationale behind the new measures, Aimee Vyda Quashie, who signed the notice on behalf of the BoG Secretary, said the move is aimed at “sustaining confidence in Ghana’s payment system and promoting financial discipline.”
“The Bank of Ghana remains committed to ensuring integrity and trust in the use of cheques as a payment instrument. The abuse of this system undermines public confidence and must be decisively addressed,” she stated.
Banks and SDIs have also been directed to submit monthly reports on dud cheques to the central bank by the 10th of each month, even if no such cases occur—a “nil report” must still be filed.
Institutions that fail to comply or provide inaccurate data will face penalties under Sections 92(8) and 93 of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930).
BoG has ordered that copies of the notice be displayed in all banking halls and on official websites, with immediate effect.
The latest directive supersedes the 2021 notice and takes effect immediately, marking a renewed push by Ghana’s financial regulator to tighten oversight and restore public confidence in the cheque payment system.
