KEY POINTS
- Bank of Ghana suspends Consolidated Bank’s forex trading license for one month.
- Suspension follows violations in compliance with BoG’s foreign exchange regulations.
- Restoration of the license will depend on CBG meeting stringent compliance requirements.
The Bank of Ghana (BoG) has suspended the foreign exchange trading license of the Consolidated Bank of Ghana (CBG) for one month, starting from November 26, 2024.
This suspension, issued under section 11(2) of the Foreign Exchange Act, 2006 (Act 723), follows identified breaches in CBG’s compliance with BoG’s foreign exchange regulations, along with updated guidelines for inward remittance and Anti-Money Laundering/Combating the Financing of Terrorism & The Proliferation of Weapons of Mass Destruction (AML/CFT&P) guidelines.
According to BoG’s notice, the license suspension period will end only when the bank is assured that CBG has implemented stringent controls to comply fully with all foreign exchange regulations.
Reasons behind the suspension
In a statement signed by BoG Secretary Sandra Thompson, the central bank detailed that the decision was driven by numerous regulatory violations discovered within CBG’s forex operations.
These violations pertained specifically to regulations designed to prevent money laundering, as stipulated in BoG’s guidelines updated in December 2022, and guidelines related to inward remittance services for payment providers, last updated in November 2023.
The notice highlighted the importance of strict compliance with these regulatory frameworks, particularly given the potential for foreign exchange and remittance channels to be misused if not properly monitored.
According to Graphic Online, the BoG’s intervention is intended to reinforce the integrity of the forex market and prevent unauthorized activities that could undermine Ghana’s financial stability.
Compliance and restoration conditions
For its forex license to be reinstated, CBG must show that it has complied with compliance systems and controls. CBG’s forex operations Being informed of this requirement by the Bank of Ghana, the entity asserted that it would help to make certain that the institution complies strictly with all the regulatory guidelines in future.
Sandra Thompson reiterated that BoG is set on a regulated and efficient forex market, calling on all entities with stakes in the forex mart to do the same.
Moreover, BoG noted that more enforcement actions would be taken against the various institutions who refused to adhere to the set policies and any legislation in this country.
The Bank of Ghana has been arranging effectively to enhance the authorities on the financial sector especially within foreign exchange among other measures to improve on the economic steadiness of the country and confidence of investors.
