First-time dud cheque offenders to face 10% surcharge — Bank of Ghana
First-time dud cheque offenders to face 10% surcharge — Bank of Ghana
The Bank of Ghana (BoG) has introduced stricter measures to combat the issuance of dud cheques, announcing that first-time offenders will now face a 10 percent surcharge on the face value of the cheque, in addition to other regulatory consequences.
According to a notice sighted by the Ghana News Agency, customers who issue dud cheques for the first time will face immediate financial and regulatory consequences under the new directive. The policy represents a significant shift in the central bank’s approach to addressing cheque fraud, moving from primarily educational interventions to immediate financial penalties.
Under the directive, offenders will be surcharged 10 percent of the face value of the cheque and issued with a formal warning by the bank or specialised deposit-taking institution. This financial penalty serves as an immediate consequence for the offense, designed to create a tangible deterrent against future violations.
In addition to the surcharge, offenders will be reported to the Credit Reference Bureaus and the Bank of Ghana, ensuring that the violation is recorded in their financial history and could affect their future creditworthiness and banking relationships.
The Central Bank further directed that such customers be placed under surveillance for at least one year, during which their banking activities will be closely monitored. This extended monitoring period allows financial institutions to monitor for repeat offenses and provide guidance or intervention if needed.
The warning issued to offenders must outline the consequences of repeating the offence and may be communicated through short message service, email or other official means. The directive requires that the warning be properly documented, serving as a formal record for future reference in the event of subsequent breaches.
The Bank of Ghana explained that the measure was necessary due to the continued issuance of dud cheques by some customers, despite earlier interventions. The practice had undermined trust in the payment system and affected the acceptance of cheques in financial transactions, creating inefficiencies in the banking system.
By strengthening sanctions at the initial stage, the Central Bank aims to create a stronger deterrent and encourage responsible financial behaviour among bank customers. The approach recognizes that early intervention with meaningful consequences can prevent the development of habitual offending patterns.
Financial institutions have therefore been instructed to strictly enforce the new measures and ensure that all first-time offences are promptly reported and sanctioned. This uniform application across the banking sector ensures consistency in how dud cheque offenses are handled, regardless of which institution the customer uses.
The Bank reiterated its commitment to maintaining stability, transparency and discipline within Ghana’s banking sector. This latest measure is part of a broader strategy to strengthen the integrity of the payment system and protect both financial institutions and consumers from the costs and disruptions associated with fraudulent financial instruments.
As Ghana continues to modernize its financial infrastructure and promote electronic payment alternatives, maintaining confidence in traditional payment methods like cheques remains important for financial inclusion, particularly for segments of the population that may not have immediate access to digital banking services.
The new policy reflects a growing recognition that effective financial regulation requires both preventive measures and meaningful consequences for violations. By combining financial penalties with monitoring and reporting requirements, the Bank of Ghana has created a comprehensive approach that addresses both the immediate offense and the potential for recidivism.
Image Source: GHANA BUSINESS NEWS
