Financial Crime World

Ghana’s Crackdown on Financial Crimes: An Overview of Regulatory Bodies and Laws

Ghana, known for its rich natural resources, has found itself on the grey list of the Financial Action Task Force (FATF) due to insufficient measures in its Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) regime. However, Ghanaian authorities remain committed to strengthening their AML/CFT framework and implement regulations across sectors and institutions.

Background

The Ghanaian government took a significant step forward in its fight against financial crimes with the enactment of the Anti-Money Laundering Act 2020 (Act 1044). This legislation aims to address the deficiencies of the older Act 749 (2008) and establish an effective, comprehensive AML/CFT regime.

Key Provisions of the Anti-Money Laundering Act 2020 (Act 1044)

Under this new legislation, Ghana introduces the following concepts and provisions:

  • Recognition of virtual asset service providers: This expands the scope of accountability for cryptocurrencies and digital assets.
  • Expansion of the definition of money laundering: This now encompasses individuals who facilitate the commission of unlawful activities.
  • Establishment of the Economic and Organized Crime Office: This special entity deals with investigating and prosecuting money laundering and other organized crimes. The Attorney-General of Ghana has the authority to prosecute such cases.

Sanctions

Individuals found guilty of money laundering offenses face strict penalties including fines ranging from 100% to 500% of the proceeds of the crime. Corporate entities face fines equaling at least three times the proceeds.

Financial Intelligence Centre (FIC)

Established under the AML Act 2008 (as amended), the Financial Intelligence Centre (FIC) serves as Ghana’s primary institution for receiving and analyzing Suspicious Transaction Reports (STRs) related to Money Laundering (ML), Terrorist Financing (TF), and Proliferation Financing (PF). The FIC collaborates with investigating authorities, security, and intelligence agencies and has the power to request additional information from accountable institutions and Designated Non-Financial Businesses and Professions (DNFBPs).

Governmental Bodies Involved in the Fight against Financial Crimes

The following organizations play a crucial role in Ghana’s efforts against financial crimes:

  1. The Financial Intelligence Centre (FIC)
  2. The Bank of Ghana
  3. The Securities Exchange Commission (SEC)
  4. Ghana Pensions Authority
  5. National Insurance Commission
  6. Gaming Commission
  7. The Inter-Governmental Action Group Against Money Laundering and Terrorist Financing in West Africa (GIABA)
  8. Economic and Organized Crime Office
  9. Ghana Police Service
  10. Bureau of National Investigation
  11. Office of Special Prosecution

Relevant Legislation

Key legislation to combat ML/TF&P in Ghana includes:

  1. AML Act 2020 (Act 1044)
  2. Anti-Terrorism Act, 2008
  3. Economic and Organized Crime Act, 2010
  4. AML Regulations 2011
  5. Anti-Terrorism Amendment, 2012
  6. Anti-Terrorism Regulation
  7. Criminal Offences Amendment Act, 2012
  8. Immigration Amendment Act, 2012

Ghana continues to make progress in its mission to strengthen its AML/CFT framework, ensuring that financial crimes are effectively tackled both domestically and internationally. Regular updates and information on this topic can be found at The Ghana Report.

Noted Entities

  • Bank of Ghana
  • Securities Exchange Commission (SEC)
  • Inter-Governmental Action Group Against Money Laundering and Terrorist Financing in West Africa (GIABA)

Additional Information