BoG warns repeat dud cheque issuers face three-year ban

The Bank of Ghana has warned that customers who repeatedly issue dud cheques will be banned from issuing fresh cheques for three years.

The central bank says such customers will also be denied access to new credit facilities within the banking and financial system.

The warning is contained in revised regulatory directives issued by the Bank of Ghana on June 24, 2026.

BoG said the sanctions are intended to curb the increasing issuance of dud cheques and restore confidence in cheques as a payment instrument.

Under the directive, all banks and specialised deposit-taking institutions will be informed when a customer is placed under the ban.

Affected customers will still be allowed to receive funds into their accounts and use other electronic transaction channels.

However, banks and specialised deposit-taking institutions must notify them within five working days after receiving notice of the ban.

The institutions are also required to recall all unused cheque books from affected customers.

BoG said the names of customers who become third-time offenders will be published.

Customers who fail to return unused cheque books within ten working days will be reported to the central bank.

They will face an additional restriction from operating current accounts.

They will also be placed on a high-risk list of cheque issuers to be maintained by the Bank of Ghana.

The central bank said the revised directive has become necessary because earlier measures issued in March 2021 and October 2025 have not sufficiently reduced the problem.

According to BoG, it has observed with grave concern the high issuance of dud cheques by some customers of banks and specialised deposit-taking institutions.

It said the practice has weakened public confidence in cheques and affected their acceptance as a reliable means of payment.

The new directive takes immediate effect and replaces the previous directives issued in 2021 and 2025.

Under the revised sanctions, a customer who issues a dud cheque for the first time will pay a levy equal to 10 per cent of the face value of the cheque.

The bank or specialised deposit-taking institution must also issue a warning notification to the customer.

The offence must be reported to the Credit Reference Bureaus and the Bank of Ghana.

The customer will also be placed under surveillance for at least one year.

BoG said the warning may be sent through SMS, email or any other established communication channel between the institution and the customer.

The notice must also explain the additional sanctions that may apply if the offence is repeated.

For a second offence within one year, the customer will pay a levy equal to 15 per cent of the face value of the cheque.

The customer will also receive another warning notification.

BoG further directed banks and specialised deposit-taking institutions to continue submitting data on dud cheque issuers to Credit Reference Bureaus in line with the Credit Reporting Act, 2007.

They are also required to submit monthly returns on dud cheques to the Bank of Ghana by the 10th day of the following month.

Institutions must submit nil returns for months in which no dud cheques are recorded.

The central bank warned that failure to submit returns, or submitting inaccurate or incomplete returns, will attract sanctions under the Banks and Specialised Deposit-Taking Institutions Act, 2016.