The Bank of Ghana (BoG) has announced the implementation of a stricter sanctions regime aimed at addressing the growing problem of dud cheques within the financial sector.

Under the new directive, which took effect on Tuesday, October 14, 2025, customers who issue dud cheques will face graduated penalties depending on the frequency of the offence.

First-time offenders will pay a fine equivalent to 10 percent of the cheque’s face value and will be placed under monitoring for one year. A second offence will attract a 15 percent penalty, while third-time offenders will be fined 20 percent of the cheque amount.

In addition to the financial penalties, repeat offenders will face strict restrictions, including a three-year ban from issuing cheques, a one-year suspension from accessing new credit facilities, and blacklisting by credit reference bureaus as high-risk issuers.

The new sanctions replace the previous 2021 directive and are designed to strengthen public confidence in the cheque payment system.

“The Bank of Ghana has observed with grave concern the high issuance of dud cheques by some customers of banks and specialised deposit-taking institutions (SDIs). This development undermines trust and affects the acceptance of cheques in transactions,” the central bank stated.

“To discourage this malpractice and sustain confidence in the payment system, the Bank of Ghana has revised the sanctioning regime on dud cheques for strict compliance by all banks and SDIs,” the statement added.

The BoG has also directed all banks and SDIs to submit monthly reports on dud cheque cases and to display the new sanctions prominently in their banking halls and on their websites.

According to the central bank, the move forms part of efforts to restore discipline and integrity in the financial system while ensuring that cheques remain a trusted means of payment in Ghana’s economy.