Ghana: BoG Suspends Consolidated Bank Ghana’s Forex Trading License Over Regulatory Breaches

The Bank of Ghana (BoG) has announced a one-month suspension of Consolidated Bank Ghana’s (CBG) Foreign Exchange Trading License, effective November 26, 2024. This action follows multiple violations of Ghana’s foreign exchange market regulations by CBG.

Grounds for Suspension

In a statement signed by Sandra Thompson, Secretary of the Bank of Ghana, the central bank cited breaches under Section 11(2) of the Foreign Exchange Act, 2006 (Act 723) as the basis for its decision. The violations involved:

• Inward Remittance Guidelines: Non-compliance with updated regulations for Payment Service Providers, introduced in November 2023.
• AML/CFT&P Compliance: Breaches of Anti-Money Laundering and Combating the Financing of Terrorism & Proliferation of Weapons of Mass Destruction guidelines issued in December 2022.

The BoG emphasized that these infractions compromised the integrity of the foreign exchange market and posed risks to the stability of Ghana’s financial system.

Reinforcing Regulatory Compliance

The central bank clarified that the suspension serves as a disciplinary measure to ensure adherence to Ghana’s financial regulations.

“The licence will be restored at the end of the one-month suspension period once the Bank of Ghana is satisfied that CBG has implemented effective controls to guarantee strict compliance with foreign exchange market regulations,” the statement read.

This action underscores the BoG’s commitment to maintaining a stable and secure financial environment, emphasizing its zero-tolerance approach to regulatory breaches.

Warning to Market Participants

In its statement, the Bank of Ghana issued a stern warning to all participants in the foreign exchange market. It stressed the importance of adhering to forex market regulations and guidelines to uphold the integrity of Ghana’s financial system.

The BoG’s decision to suspend CBG’s license sends a clear message to the financial sector about the consequences of non-compliance, highlighting the central bank’s resolve to crack down on activities that undermine market transparency and stability.

This suspension reaffirms the BoG’s commitment to enforcing accountability and protecting the soundness of Ghana’s financial sector.