Financial Crime World

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Ghana’s Efforts to Combat Money Laundering and Terrorist Financing Under Scrutiny

Accra, Ghana - As part of its commitment to combating money laundering (ML) and terrorist financing (TF), Ghana recently reviewed its National Risk Assessment (NRA) process. The review aimed to identify and mitigate ML/TF risks by strengthening the country’s Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) regime.

Challenges in the Process

However, a closer look at the process raises concerns about the lack of cooperation from some institutions and sectors, particularly in the high-risk DNFBPs sector. Many respondents expressed fears of repercussions for providing information, citing potential tax audits and business secrets being exposed to competitors.

  • Industry players lacked knowledge on ML/TF issues, making it challenging to gather accurate data.
  • Many institutions did not have adequate Management Information Systems (MIS) to generate the required data.

History of Challenges

According to sources, Ghana’s Mutual Evaluation Report in 2016 identified several challenges in the country’s compliance with AML/CFT measures. The extractive and petroleum, cocoa, and hotel sectors were not included in the earlier assessment, and sector-specific guidelines had not been revised to align with the Financial Action Task Force (FATF) revised 40 Recommendations.

NRA Review Process

The NRA review process involved two phases: re-composition of working groups and validation of reports. However, data collection was hindered by:

  • Limited access to information
  • Lack of clarity on questionnaire questions
  • Difficulties in validating provided data

Progress Made

Despite these challenges, Ghana has made progress in developing a National AML/CFT Policy document and Action Plan. The reviewed NRA process also identified ML/TF risks and vulnerabilities, including:

  • Fraud
  • Stealing
  • Robbery
  • Drug trafficking
  • Corruption
  • Tax evasion

The country’s overall threat rating was medium-high, with cybercrime being a significant concern.

Conclusion

Ghana’s efforts to combat ML/TF are crucial in addressing illicit financial flows and transnational organized crimes. As the country moves forward, it is essential that institutions and sectors cooperate fully with authorities to ensure effective implementation of the AML/CFT regime.

What do you think? Can Ghana’s AML/CFT regime effectively combat money laundering and terrorist financing without full cooperation from all stakeholders? Share your thoughts in the comments section below.