Financial Crime World

Bank of Ghana Issues AML/CFT Guidelines for Financial Institutions

The Bank of Ghana has issued new guidelines to combat money laundering and terrorist financing (AML/CFT) in the country’s financial sector. These guidelines aim to ensure that all accountable institutions comply with the requirements of the law and obligations imposed on them.

Objective

The AML/CFT Guidelines are formulated in accordance with the provisions of the Anti-Money Laundering Act, 2008 (Act 749) as amended, and the Anti-Terrorism Act, 2008 (Act 762) as amended. The guidelines also provide guidance on Know Your Customer (KYC) measures to assist accountable institutions in implementing the guidelines.

Part A: AML/CFT Directives

  • All financial institutions licensed by the Bank of Ghana must adopt policies indicating their commitment to comply with AML/CFT obligations under the relevant Acts and regulations.
  • Institutions must formulate and implement internal rules, procedures, and controls to prevent any transaction that facilitates money laundering or terrorist financing.

Risk Assessment

  • Accountable institutions are required to assess their AML/CFT risks in relation to:
    • Customers
    • Countries
    • Products
    • Services
    • Transactions
    • Delivery channels
  • Institutions must consider all relevant risk factors before determining the level of overall risk and the appropriate mitigation measures to be applied.

Appointment of Anti-Money Laundering Reporting Officer

  • Each financial institution is required to appoint a responsible official as an Anti-Money Laundering Reporting Officer (AMLRO) who will operationally report to the institution’s board.
  • The AMLRO must have access to other information that may be of assistance in considering suspicious or unusual transactions.

Cooperation with Competent Authorities

  • Financial institutions are required to declare their commitment to comply promptly with all requests made by competent authorities, such as the Bank of Ghana and the Financial Intelligence Centre (FIC).

Unlawful Activities

  • The guidelines identify several unlawful activities that financial institutions must report to the Bank of Ghana and the FIC, including:
    • Participation in organized criminal groups
    • Terrorism
    • Human trafficking
    • Sexual exploitation
    • Drug trafficking
    • Others

Measures Against ML/TF

  • Notwithstanding an accountable institution’s internal policies relating to customer confidentiality, competent authorities shall have access to information to perform their functions in combating money laundering and financing of terrorism.
  • The sharing of information between competent authorities is also encouraged.

Conclusion

The Bank of Ghana has emphasized the importance of compliance with these guidelines, stating that non-compliance may result in severe consequences, including fines and even revocation of licenses. The guidelines are effective immediately, and all accountable institutions are required to comply forthwith.

Source: Bank of Ghana