Bank of Ghana Tightens Sanctions On Dud Cheque Offenders

The Bank of Ghana (BoG) has introduced significantly tougher sanctions against customers who issue dud cheques, effective June 24, 2026. This revised graduated sanctions regime, outlined in Notice No. BG/GOV/SEC/2026/12, aims to curb the persistent rise in dishonoured cheques and restore confidence in Ghana's payment system. Offenders now face escalating penalties, including a percentage levy on the cheque's value, reporting to Credit Reference Bureaus, extended surveillance, and for repeat offenders, a three-year ban on cheque issuance and a one-year restriction from accessing new credit facilities. Banks and Specialised Deposit-Taking Institutions (SDIs) are mandated to enforce these measures and comply with strict reporting obligations, with non-compliance attracting sanctions under the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930).

The integrity and efficiency of a nation's payment system are foundational to its economic stability and commercial confidence. In Ghana, the persistent issue of dud cheques has long posed a significant challenge, undermining trust in cheque-based transactions and creating operational inefficiencies for businesses and financial institutions alike. In response to this escalating concern, the Bank of Ghana (BoG) has announced a stringent new set of sanctions targeting customers who issue dishonoured cheques.

Issued on June 24, 2026, under Notice No. BG/GOV/SEC/2026/12, these revised directives supersede previous measures and introduce a graduated, more punitive regime designed to deter offenders effectively. The central bank's move signals a heightened commitment to safeguarding the country's payment infrastructure and ensuring that cheques remain a reliable instrument for financial transactions. This article delves into the specifics of these new sanctions, their legal underpinnings, and their implications for legal practitioners and financial sector participants in Ghana.

The issuance of dud cheques in Ghana is not merely a contractual breach but a criminal offence. Section 313(A) of the Criminal Offences Act, 1960 (Act 29), as amended, explicitly criminalises the act of issuing a cheque without sufficient funds, making it punishable by a fine and/or imprisonment of up to five years. Beyond this criminal aspect, the legal framework governing cheques is primarily rooted in the Bills of Exchange Act, 1961 (Act 55), which outlines the form, interpretation, and duties related to bills of exchange, including cheques.

The Bank of Ghana, as the primary regulator of payment and settlement systems under the Bank of Ghana Act, 2002 (Act 612) and the Payment Systems and Services Act, 2019 (Act 987), has a mandate to promote, regulate, and supervise these systems. Historically, the BoG has issued various directives to address the problem of dud cheques. Notably, previous measures were introduced in March 2021 (Notice No. BG/GOV/SEC/2021/03) and October 2025. However, the central bank observed a persistent high incidence of dud cheques despite these earlier interventions, necessitating the introduction of the current, more rigorous sanctioning regime.

The new directive, Notice No. BG/GOV/SEC/2026/12, introduces a significantly escalated and graduated sanctions regime for customers of banks and Specialised Deposit-Taking Institutions (SDIs) who issue dud cheques. The sanctions are tiered based on the frequency of the offence within a one-year period.

For a first-time offender, the customer will be charged a penalty equivalent to 10 percent of the cheque's face value. In addition, the bank or SDI is required to issue a formal warning, report the offence to Credit Reference Bureaus and the Bank of Ghana, and place the affected account holder under surveillance for a minimum period of one year. Should a customer commit a second dud cheque offence within one year of the first, a stiffer penalty of 15 percent of the cheque's value will be levied. This is accompanied by another formal warning and fresh reporting to the relevant authorities, including the Credit Reference Bureaus and the central bank.

The most severe penalties are reserved for third-time offenders within the same one-year period. Such customers will incur a penalty of 20 percent of the cheque's face value. Crucially, they will also be prohibited from issuing cheques in Ghana for a minimum period of three years and banned from accessing new credit facilities from the banking system for one year. The Bank of Ghana has also indicated that it may publish the names of these third-time offenders, adding a reputational consequence to the financial and operational restrictions.

Beyond individual customer sanctions, the directive places significant obligations on banks and SDIs. They are mandated to recall all unused cheque books from banned customers within five working days of notification. Failure by a customer to return these unused cheque books within ten working days could result in additional sanctions, including a possible ban from operating any current account and being listed in a proposed “Directory of High-Risk Cheque Issuers” to be maintained by the central bank. Furthermore, banks and SDIs are required to submit monthly returns on dud cheques to the Bank of Ghana by the 10th day of the following month, with non-compliance or submission of inaccurate information attracting sanctions under Section 93 of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930). This comprehensive approach underscores the BoG's determination to enforce compliance and restore confidence in the payment system.

The Bank of Ghana's intensified sanctions on dud cheque offenders mark a pivotal moment in the regulation of Ghana's payment system. These stringent, graduated penalties, coupled with enhanced reporting requirements and the potential for public listing of offenders, underscore the central bank's unwavering commitment to fostering a reliable and trustworthy financial environment. The new regime is a clear signal that the era of lenient treatment for dud cheque issuers is over, with significant consequences for both individuals and corporate entities.

For legal practitioners, these directives necessitate a proactive approach. Attorneys must advise their clients – both individuals and businesses – on the severe financial, credit, and operational implications of issuing dud cheques. This includes reviewing internal financial management controls, ensuring adequate funds are always available, and understanding the reporting mechanisms to Credit Reference Bureaus and the BoG. Banks and SDIs, on their part, must ensure strict adherence to the new directives, including the accurate imposition of penalties, timely reporting, and the recall of unused cheque books, to avoid regulatory sanctions under Act 930. The effectiveness of these measures will be closely watched, potentially shaping future trends in payment methods and credit assessment in Ghana.