Bank of Ghana cracks down on 245 businesses and 47 individuals for issuing dud checks

The Bank of Ghana (BoG) has taken significant action against 47 individuals and 245 business entities for the repeated issuance of dud checks. The Central Bank’s stringent measures come in response to offenders who issued dud checks on at least three occasions between January 2022 and January 2024, despite prior warnings.

In a statement released on August 6, 2024, the BoG outlined the sanctions: “The offenders are accordingly banned from issuing checks in Ghana for three years, effective 28th June 2024, and accessing new credit facilities from the banking system for three years with effect from 28th June 2024.”

These penalties are part of the BoG’s broader effort to maintain the integrity and soundness of the financial system. The sanctions imposed are without prejudice to any legal proceedings that may be pursued against the offenders under Ghana’s criminal code.

Banks and specialised deposit-taking institutions (SDIs) with affected customers have been instructed to inform the offenders of the ban and to recall all unused chequebooks. These institutions are prohibited from issuing new checks to the sanctioned customers until the three-year ban is lifted.

The Central Bank also issued a stern warning to the public about the severe consequences of issuing dud checks, highlighting both legal and regulatory repercussions.

“The Bank of Ghana will continue to monitor the payment system space closely and is committed to promoting the integrity and soundness of the financial system,” the statement concluded.

This decisive move by the BoG underscores the importance of adhering to banking regulations and the serious implications of financial misconduct in Ghana.

Read full statement from BoG: NOTICE-NO.-BOG-GOV-SEC-2024-19-Santioning-of-Bank-Customers-for-Persistent-Issuance-of-Dud-Cheques1