The Bank of Ghana (BoG) has banned 47 individuals and 245 business entities from issuing dud cheques.
This enforcement action addresses breaches related to issuing cheques without sufficient funds.
A dud cheque is defined as one that a bank or specialized deposit-taking institution dishonours due to inadequate funds in the issuer’s account.
According to a statement released by the BoG on August 6, these individuals and entities issued dud cheques on at least three occasions between January 2022 and January 2024, despite prior warnings about the repercussions of such actions.
The sanctions imposed are as follows:
- Cheque Issuance Ban: Affected individuals and businesses are prohibited from issuing cheques in Ghana for three years starting June 28, 2024.
- Credit Restrictions: Effective June 28, 2024, they are also barred from accessing new credit facilities from the banking system for the same duration.
The BoG’s statement noted that these sanctions do not preclude the possibility of legal proceedings under Ghana’s criminal code.
In response to the sanctions, banks and specialized deposit-taking institutions (SDIs) must notify the offenders and recall their unused chequebooks.
These institutions are also directed to issue new chequebooks to the affected customers when the sanctions are lifted.
The BoG cautioned the public against issuing dud cheques, emphasizing such actions’ legal and regulatory consequences.
The central bank affirmed its commitment to monitoring the payment system closely and upholding the integrity and soundness of Ghana’s financial system.
