By Jibril Abdul Mumuni
Accra, Jan 13, GNA – Recent supervisory checks and market surveillance by the Bank of Ghana (BoG) has uncovered internal weaknesses, lapses, and inconsistencies in how some banks initiate, process, and report foreign currency transfers.
Those deficiencies, the BOG said, were heightening operational and reputational risks, increasing vulnerability to fraud and financial crime, and undermining the integrity and orderly functioning of Ghana’s Foreign Exchange Market.
The BoG, in a notice to licensed dealer banks on Monday, said the renewal and continued validity of the Foreign Exchange Trading Licenses for commercial banks would be strictly contingent upon their demonstrable and sustained compliance with regulatory and internal control standards.
To address the identified gaps, the Central Bank had mandated all institutions to immediately and consistently enforce a seven-point corrective action plan, the notice said.
The key measures include the implementation of robust verification and multi-tier authorisation for all forex transfer instructions,and ensuring strict Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) checks.
The banks must also maintain clear segregation of duties among staff in initiating, processing, and approving forex deals to mitigate fraud.
They must also deploy active, system-based monitoring to detect unusual transaction patterns and unauthorised access.
The Central Bank directed a daily reconciliation of forex accounts must be conducted, with any discrepancies resolved within 24 hours.
The directive also requires institutions to undertake periodic internal audits and escalate findings to the Board and BoG, and to run regular training programmes for all relevant staff on forex regulations and procedures.
The BoG warned that failure to comply with those directives constituted a breach of prudential and forex regulations.
Such breaches may attract sanctions under the Banks and Specialised Deposit-Taking Institutions Act, 2019 (Act 930) and the Foreign Exchange Act, 2006 (Act 723).
It called for the “full cooperation” of all licensed dealer banks to ensure strict adherence to the new measures.
That, the BOG stated, was essential to preserving the credibility, integrity, and stability of Ghana’s financial system.
GNA
Edited by Agnes Boye-Doe