BoG Intensifies Punishment For Issuing of Dud Cheques
3 weeks ago
Bank of Ghana Introduces Stricter Penalties for Issuing Dud Cheques
October 15, 2025
The Bank of Ghana has announced revised sanctions for customers who issue dud cheques, citing a concerning rise in the practice that undermines confidence in the payment system.
New Sanctions
Under the updated regime outlined in Notice No.BG/GOV/SEC/2025/31, banks and Specialised Deposit-Taking Institutions (SDIs) must now impose the following penalties on first-time offenders:
- 10% levy on the cheque's face value
- Warning notification detailing consequences of repeat offences
- Mandatory reporting to credit reference bureaus and the Bank of Ghana
- One-year surveillance period for the account holder
The warning may be delivered via SMS, email, or other established communication channels between the bank and customer. Banks must also inform customers that additional sanctions will apply for subsequent violations.
Legal Background
The Bank of Ghana reminded the public that issuing a dud cheque is a criminal offence under section 313(A) of the Criminal Offences Act, 1960 (Act 29), punishable by a fine and/or imprisonment of up to five years.
The central bank previously introduced measures against dud cheques through notice BG/GOV/SEC/2021/03, but observed continued high issuance rates despite those interventions.
Impact on Payment System
The Bank of Ghana stated that the prevalence of dud cheques has had consequential effects on the acceptance of cheques for transactions, prompting the need for stricter enforcement to sustain confidence in Ghana's payment system.
