Bank of Ghana tightens grip on dud cheques: new credit bans and escalating penalties for repeat offenders

The Bank of Ghana has rolled out a tougher crackdown on customers who repeatedly issue worthless cheques, introducing a tiered penalty system that culminates in a complete ban from accessing fresh credit for 12 months. The revised framework, announced in a Dud Cheque Notice on 7 September 2026, marks an escalation in efforts to restore faith in Ghana's payment systems and protect financial institutions from fraud.

Under the new regulations, customers convicted of issuing dud cheques for a third time will be barred from obtaining new credit and prohibited from issuing cheques for at least three years. Banks and Specialised Deposit-Taking Institutions (SDIs) are required to comply with these restrictions once the BoG notifies them of a customer's ban status.

How the penalty structure works

The revised directive introduces a three-tiered approach designed to deter repeat offenders. On a first offence, financial institutions must levy a penalty equal to 10% of the cheque's face value and formally warn the customer of escalating consequences. The offence must be reported to both Credit Reference Bureaus and the Bank of Ghana.

A second offence within one year triggers a 15% levy on the cheque amount. A third offence within the same period brings the penalty to 20% of the face value, alongside the credit ban and three-year cheque-writing restriction.

The BoG has emphasised that all banks and SDIs must submit monthly returns detailing dud cheques by the 10th day of the following month, including nil returns when no incidents occur. These figures feed into the Credit Reporting Act framework, ensuring that offenders' records are properly flagged across the financial sector.

Why it matters for Ghana

Dud cheques—cheques drawn on accounts lacking sufficient funds to cover the specified amount—have persistently undermined confidence in cheques as a reliable payment method in Ghana. Despite earlier warnings from the central bank, the practice has continued to erode public trust in the banking system and create significant losses for businesses and individuals relying on cheque transactions.

The new measures reflect the BoG's determination to restore faith in the cheque payment infrastructure, which remains important for many Ghanaian businesses and individuals. By implementing stiff penalties and credit restrictions, the central bank aims to create a strong deterrent against fraudulent cheque issuance, particularly among repeat offenders who pose the greatest risk to financial stability.

For ordinary Ghanaians, these rules signal that the banking sector is taking payment fraud seriously. For businesses that accept cheques, the framework offers greater protection and assurance. However, innocent customers must ensure their accounts maintain adequate balances to avoid triggering these penalties accidentally.

What banks must do now

Financial institutions have been reminded to adhere strictly to Section 25(c) of the Credit Reporting Act, 2007 (Act 726) when reporting dud cheque incidents to Credit Reference Bureaus. The BoG's notification system will ensure seamless communication between banks and SDIs regarding banned customers, preventing offenders from shopping between institutions to circumvent restrictions.

The revised framework represents a significant tightening of Ghana's anti-fraud measures and underscores the central bank's commitment to safeguarding the integrity of the national payment system.