Ghana Association of Banks (GAB) has urged the Bank of Ghana (BoG) to make public the names of businesses and individuals who have been penalized for issuing dud cheques.
The association argues that publishing these names in national newspapers is essential to reinstating confidence in cheques as a trustworthy payment method.
John Awuah, the Chief Executive of GAB, stressed during an interview on Joy News that such transparency would act as a significant deterrent, preventing others from engaging in the practice of issuing dud cheques.
“If someone sees their neighbor’s name on this list, it will ensure they avoid making the same mistake,” Awuah stated.
He noted that the individuals and businesses in question have repeatedly issued dud cheques over the years, highlighting that this practice is not only against central bank regulations but also constitutes a crime under the Criminal Offenses Act.
“Issuing dud cheques undermines trust in the payment system, which is why this issue is so critical,” Mr. Awuah stressed.
On August 6, 2024, the Bank of Ghana revealed that it had penalized 47 individuals and 245 businesses for repeatedly issuing dud cheques—at least three times—between January 2022 and January 2024, despite prior warnings.
As a consequence, these offenders have been prohibited from issuing cheques and accessing new credit facilities in Ghana for three years, starting from June 28, 2024.
Mr. Awuah cautioned that the continued issuance of dud cheques could result in a widespread rejection of cheques as a viable payment method, posing serious risks to the financial system.
He highlighted that numerous businesses have already incurred losses due to this practice and called on regulators to take decisive action to restore confidence in the payment system.
Echoing this concern, Seth Twum Akwaboah, CEO of the Association of Ghana Industries, expressed worries about the repercussions of the Bank of Ghana’s sanctions on businesses, particularly regarding their ability to secure new credit from banks over the next three years.