First-time dud cheque offenders to face 10% surcharge — BoG warns
The Bank of Ghana (BoG) has announced stricter measures against customers who issue dud cheques, warning that first-time offenders will face immediate financial penalties and regulatory sanctions.
According to a directive issued by the Central Bank, individuals and entities found issuing dud cheques for the first time will be surcharged 10 per cent of the face value of the cheque and issued with a formal warning by their bank or specialised deposit-taking institution.
In addition, offenders will be reported to both the Credit Reference Bureaus and the Bank of Ghana.
The directive further requires financial institutions to place such customers under close monitoring for a minimum period of one year, during which their banking activities will be subjected to heightened scrutiny.
Under the new measures, banks must clearly communicate the warning to affected customers through official channels, including text messages, email, or other approved means of communication.
The warning must also outline the consequences of future violations and be properly documented as part of the customer's records for reference in the event of repeat offences.
The Bank of Ghana explained that the decision follows the persistent issuance of dud cheques by some customers despite previous interventions aimed at curbing the practice.
According to the Central Bank, the continued circulation of dud cheques has weakened confidence in the country's payment system and negatively affected the acceptance of cheques as a reliable means of conducting financial transactions.
The BoG believes that imposing sanctions at the first instance will serve as a strong deterrent and encourage greater financial discipline among bank customers.
Financial institutions have therefore been directed to strictly enforce the new regulations and ensure that all cases involving first-time offenders are promptly reported and sanctioned in accordance with the directive.