Bank of Ghana introduces strict penalties for dud cheque issuers

The Bank of Ghana has rolled out new, stringent sanctions targeting customers who issue dud cheques, including a three-year ban on cheque usage for repeat offenders and a one-year restriction on accessing new credit facilities within the banking system.

The directive, announced on June 24, 2026, takes immediate effect and replaces all previous guidelines on dud cheque offences. The central bank said the move is driven by concern over the rising incidence of dishonoured cheques and their negative impact on confidence in cheque-based transactions.

Under the revised framework, penalties will be applied progressively based on the number of offences recorded within a one-year period.

First-time offenders will be charged a penalty of 10 percent of the cheque’s face value. They will also receive a formal warning, be reported to Credit Reference Bureaus and the Bank of Ghana, and placed under monitoring for at least one year.

A second offence within the same period attracts a 15 percent levy, along with another warning and additional reporting to credit reference agencies and the central bank.

A third offence carries the most severe punishment. Offenders will be charged a 20 percent levy, barred from issuing cheques nationwide for a minimum of three years, and prohibited from accessing new credit facilities for at least one year. The Bank of Ghana may also publish the names of repeat offenders and include them in a Directory of High-Risk Cheque Issuers.

In addition, banks and Specialised Deposit-Taking Institutions (SDIs) have been directed to withdraw all unused cheque books from affected customers and suspend the issuance of new ones until all sanctions are cleared. Customers who fail to return unused cheque books within ten working days of notification risk being reported to the Bank of Ghana, which may also impose a restriction on their current accounts.

Financial institutions are further required to display the directive prominently in banking halls and on their official websites, continue reporting dud cheque incidents to Credit Reference Bureaus, and submit monthly compliance reports to the Bank of Ghana by the 10th of each month. Non-compliance will attract sanctions under Section 92(8) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930).

The central bank said the new measures are aimed at deterring the issuance of dud cheques and strengthening public confidence in the integrity of cheque-based financial transactions across the country.

Prince Antwi

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