The Bank of Ghana (BoG) has proposed tougher penalties for people and companies who write bad checks in an effort to stop the crime’s rising prevalence and rebuild trust in the nation’s payment system.
Aimee Vyda Quashie, the Bank’s secretary, signed a new directive on October 14, 2025, reminding the public that issuing a dud cheque is still a crime under Section 313(A) of the Criminal Offences Act, 1960 (Act 29), which carries a maximum five-year jail sentence and a fine.
The issuing of bogus checks by certain bank and Specialised Deposit-Taking Institution (SDI) customers has persisted at an alarming pace, the Bank stated, weakening trust in check-based transactions despite earlier steps implemented in 2021.
The BoG has updated the criminal penalty system to address the issue. In addition to receiving a formal warning and having their information recorded to the central bank and credit reference bureaus, first-time offenders will be penalised 10% of the check’s face value.
A 15% levy will be applied for the second offence within a year, while a 20% fine and a three-year nationwide check-issuing suspension will be imposed for the third offence.
The banking system will also prevent offenders from obtaining new credit facilities for a year.
The letter added that banks must recall all unused check books and notify defaulters who do not return them within ten days. It further said that the Bank of Ghana would prohibit such a customer from issuing checks within the nation for at least three years.
The new Directory of High-Risk Cheque Issuers will also include repeat offenders and be used as a reference by all banks and SDIs.
Additionally, by the tenth of every month, financial institutions are required under the mandate to report on dud checks to the central bank and credit reference bureaus.
Under the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930), banks and SDIs that disregard the instruction will face penalties.
The central bank stressed that this new notice takes immediate effect and replaces the 2021 regulation on the same topic.
Source: newsthemegh.com