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The Bank of Ghana has taken the decisive step of temporarily suspending the foreign exchange trading licenses of two Nigerian-owned banks, Guaranty Trust Bank and First Bank, operating within its borders. The suspension is a direct response to the identification of “fraudulent documentation” in the forex operations of these banks.
In a statement issued on Monday, the Ghanaian regulator outlined that the suspension would be effective from March 18, 2024, and would extend for a duration of one month.
The statement read, “Bank of Ghana has suspended the Foreign Exchange Trading Licences of Guaranty Trust Bank Ghana Limited (GTB) and FBNBank Ghana Limited (FBN), effective 18th March 2024, for a period of one (1) month, in accordance with section 11 (2) of the Foreign Exchange Act 2006, (Act 723).”
The suspension is a direct consequence of various violations of foreign exchange market regulations, specifically involving fraudulent documentation in the banks’ foreign exchange operations, which have come to the attention of the Bank of Ghana. The regulatory authority has outlined that the restoration of the licenses will be considered at the conclusion of the one-month suspension period, contingent on the banks implementing effective controls to ensure strict adherence to foreign exchange market regulations.
The Bank of Ghana has also issued a stern warning to all foreign exchange market participants, emphasizing the imperative of strict compliance with applicable forex market regulations and guidelines.
This move by the Bank of Ghana underscores the regulatory commitment to maintaining the integrity and transparency of the foreign exchange market, sending a clear message to financial institutions to uphold the highest standards in their operations. The temporary suspension serves as both a corrective measure and a signal to the broader financial community about the consequences of violating regulatory standards in forex operations.
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