Persons who issue dud cheques to face imprisonment of 5 years – BoG

The Bank of Ghana has reminded the general public to beware of the repercussions of issuing dud cheques.

Bank of Ghana Governor, Ernest Addison

According to the Central Bank, the act is an offence, that can attract a fine or imprisonment of up to five years.

It has advising businesses and Individuals to always ensure that they have enough funds in their accounts before issuing cheques.

"It is an offence punishable by a fine and or imprisonment of up to five years to issue a dud cheque," it said.

This is under section 313(A) of the Criminal Offences Act, 1960 (Act 29) as amended.

This is contained in a statement by the Bank as part of the Financial Literacy Education on Dud Cheques.

The statement noted that if one issues a dud cheque for the first time, his/her financial institution will issue a warning and also report that offence to the Credit bureau after which the financial Institution will place that individual under surveillance period of three years.

"Your financial institution shall place you under surveillance for a minimum period of three years when you issue a dud cheque for the first time," it said.

Also, if one issues a dud cheque for the second time within three years of the first offence, that person will be reported to the Bank of Ghana.

"If you issue a dud cheque for the second time within three years of the first offence, your financial institution shall report your conduct to the Bank of Ghana. Your details and the breach shall be recorded in a dud cheque register maintained at the BoG," the statement read.

Moreover, "If you issue a dud cheque for a third time within three years you will be banned from issuing cheques within the country for a minimum period of 3 years," It added.

Additionally, the BOG noted that a person or Business shall be banned from accessing new credit facilities if they issue a dud cheque for the third time within 3 years.

"You shall be banned from accessing new credit facilities from all financial institutions for three (3) years if you issue a dud cheque for the third time within 3 years," it noted.

The statement ends by cautioning the public and Businesses to be cautious of the practice because their names can be published in two daily newspapers of national circulation for engaging in this act.

"Beware! Your name shall be published in two daily newspapers of national circulation if you issue a dud cheque for the third time within 3 years," it added.

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