Financial Crime World

Title: Ghana’s Second Round Mutual Evaluation Report: Progress and Areas for Improvement in FATF Guidelines

Ghana’s financial system has made strides in the battle against money laundering and terrorist financing with the release of its Second Round Mutual Evaluation Report by the Financial Action Task Force (FATF)-style regional body, the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA). This assessment provides an insight into Ghana’s ongoing endeavors to reinforce its anti-money laundering (AML) and counter-terrorist financing (CTF) framework.

Evaluation Based on FATF Recommendations

The May 2017 report assessed Ghana’s AML/CTF regime based on the FATF Recommendations, which serve as the global benchmark for AML/CTF policies. The evaluation covered various aspects of Ghana’s AML/CTF system, including risk assessment, national policies, legal system and operational issues, preventive measures, supervision, and international cooperation.

Key Findings

  • Progress in Risk Assessment: Ghana demonstrated significant achievements in its risk assessment.
  • Enhanced National Policies: The country has strengthened its national policies, such as the passage of the Proceeds of Crime Act (POCA), which was the first major legislative achievement in the fight against financial crimes.
  • Adoption of Risk-Based Approach: Ghana has adopted the Risk-Based Approach, which allows for a more effective implementation of AML/CTF measures.
  • Improvements in Financial Intelligence Unit (FIU): Significant improvements have been made in the FIU and its analysis and dissemination of information.

Ongoing Challenges

Despite these achievements, challenges remain, including:

  • Insufficient Resources: Ensuring sufficient resources for regulatory and law enforcement agencies remains a challenge.
  • ML Investigation and Prosecution: More work is needed to address money laundering investigation and prosecution.
  • Confiscation of Proceeds: The confiscation of proceeds from financial crimes also requires improvement.

Priority Actions

The report outlines several priority actions to address these challenges, particularly in the areas of financial intelligence, ML investigation and prosecution, confiscation, and the implementation of financial sanctions related to terrorism and terrorist financing.

In conclusion, the second round evaluation report underscores the progress Ghana has made in its AML/CTF efforts, while also identifying areas for future improvement. The country is dedicated to implementing the recommendations outlined in the report, with the ultimate goal of further safeguarding the integrity of Ghana’s financial system. For more information about GIABA and its work, please visit their website.