The Bank of Ghana (BoG) has announced the suspension of the Consolidated Bank Ghana (CBG)’s Foreign Exchange Trading License, effective November 26, 2024, for a period of one month. This decision comes in response to regulatory violations identified within CBG's operations, which fall under the Foreign Exchange Act, 2006 (Act 723).
The BoG’s decision follows a series of investigations that uncovered multiple breaches of foreign exchange market regulations by CBG. Specifically, the central bank noted infractions against recent regulatory guidelines. These include the "Updated Guidelines for Inward Remittance Services for Payment Service Providers," introduced in November 2023, and the "Anti-Money Laundering/Combating the Financing of Terrorism & The Proliferation of Weapons of Mass Destruction (AML/CFT&P) Guideline" established in December 2022. According to the BoG, CBG's actions contravened both foreign exchange and AML/CFT protocols, thereby compromising financial integrity and compliance within Ghana’s financial sector.
In its statement on November 12, the BoG clarified that this suspension serves as a corrective measure, aimed at encouraging stricter adherence to the regulatory framework governing foreign exchange activities. The central bank emphasized that CBG must implement robust internal controls and compliance mechanisms to ensure future adherence to all market regulations. Failure to meet these requirements within the suspension period may result in further regulatory actions.
While the suspension is set to last for one month, the BoG indicated that the license would be reinstated if CBG demonstrates effective compliance and addresses the identified shortcomings. The BoG also issued a warning to all participants in the foreign exchange market, urging them to maintain full compliance with applicable rules and regulations to avoid similar penalties.
This move by the BoG underscores Ghana's commitment to regulating and securing its financial sector. The central bank has steadily introduced measures to strengthen the financial ecosystem and curb any potential risks associated with non-compliant practices. The suspension of CBG's license highlights the BoG’s resolve to maintain transparency, enforce compliance, and protect the integrity of Ghana's foreign exchange market.
For readers interested in staying informed about Ghana's financial regulatory developments, Citinewsroom provides continuous updates on these impactful stories.
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