BoG clamps down on dud cheques with stricter penalties

The Bank of Ghana has introduced a tougher set of penalties aimed at curbing the persistent issue of dud cheques. These cheques mostly bounce back due to insufficient funds.

Despite having an existing framework in place, the central bank noted that some customers continue to issue dud cheques at an alarming rate, undermining the credibility of cheques as a trusted payment method in Ghana.

To address this growing concern, the Bank of Ghana has rolled out a revised sanctioning regime that escalates penalties for repeat offenders.

For a first offence, banks and Specialised Deposit-Taking Institutions (SDIs) are required to charge 10% of the cheque’s face value and issue a formal warning to the customer.

This warning must clearly outline the consequences of future violations and can be delivered via SMS, email, or other established communication channels.

Additionally, the offence must be reported to credit reference bureaus and the BoG, and the customer placed under surveillance for at least one year.

If a second dud cheque is issued within that one-year period, the penalty increases to 15% of the cheque’s value, and another warning is issued. The offence is again reported to the relevant authorities.

A third offence within the same timeframe triggers even harsher consequences, which are a 20% penalty, a minimum three-year nationwide ban on issuing cheques, and a one-year suspension from accessing new credit facilities across the banking system.

The BoG will notify all financial institutions of this ban, and the customer’s bank must inform them within five working days, recall all unused cheque books, and refrain from issuing new ones until the sanctions are lifted.

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“Crucially, the BoG will impose a minimum three-year ban on the customer from issuing cheques anywhere in the country...Furthermore, a third-time offender will be banned from accessing new credit facilities from the entire banking system for one year, and the BoG will notify all financial institutions of this ban.

“Upon receiving this notification, the customer’s bank must inform the customer within five working days, recall all unused cheque books, and must not issue new ones until the sanctions are lifted,” the central bank said.

The BoG also reserves the right to publish the names of third-time offenders.

If a customer fails to return unused cheque books within ten days of notification, they will be reported and may face additional restrictions, including a ban from operating any current account.

Their name could also be added to a Central Bank Directory of High-Risk Cheque Issuers, which will serve as a reference for the entire financial industry.

These measures, effective from October 14, 2025, are part of the BoG’s broader effort to strengthen financial discipline and restore public confidence in cheque transactions.

SA/AE

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