Ghana’s Central Bank, in its latest move to regulate the foreign exchange market, has suspended the foreign exchange licenses of Guaranty Trust Bank and FBN Bank for a duration of one month, effective from March 18. This action follows the Bank of Ghana’s decision three months prior to bar eight money transfer organizations (MTOs) from providing remittance services without proper regulatory approval.
According to a statement released by the apex bank on Monday, the affected banks were found to have committed various breaches of foreign exchange market regulations, including the submission of fraudulent documentation in their forex operations.
In response to the suspension, Guaranty Trust Bank issued a statement on Tuesday, expressing active collaboration with the Bank of Ghana to swiftly address the trade-related issues leading to the suspension. The bank assured customers that all other business operations remained unaffected, emphasizing that the suspension only pertained to its foreign exchange segment.
The decision to suspend the FX licenses aligns with Section 11 (2) of the Foreign Exchange Act 2006, which grants the Bank of Ghana the authority to suspend licenses for a specified period rather than revoking them outright.
The Bank of Ghana further stated that it would consider reinstating the licenses of the affected banks after one month if they demonstrate the implementation of effective controls to ensure strict compliance with regulations. Additionally, the apex bank cautioned other financial institutions to adhere strictly to forex market regulations and guidelines.
This move by Ghana’s Central Bank comes in the wake of similar regulatory actions in the region. Last week, the Central Bank of Nigeria revoked the licenses of over 4,000 Bureau De Change operators (BDCs) for failure to meet regulatory obligations, including payment of fees, submission of returns, and compliance with anti-money laundering and terrorism financing regulations.
