Financial Crime World

Bank Compliance Procedures in Ghana: A Regulatory Framework

The Bank of Ghana has been vested with overall supervisory and regulatory authority over all banking and non-banking financial businesses, aimed at achieving a sound and efficient banking system that serves the interests of depositors and the economy as a whole.

Regulatory Framework

The regulatory framework governing banks, non-bank financial institutions, and forex bureaux in Ghana is anchored on several key pieces of legislation, including:

  • The Bank of Ghana Act 2002 (Act 612)
  • The Bank of Ghana (Amendment) Act, 2016 (Act 918)
  • The Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930)
  • The Non-Bank Financial Institutions Act, 2008 (Act 774)
  • The Companies Act, 2019 (Act 992)

Key Regulatory Bodies

  • Bank of Ghana
  • Securities and Exchange Commission
  • National Pensions Regulatory Authority
  • Insurance Division

Regulatory Functions

As a regulator, the Central Bank is mandated to ensure that the banking system operates in a safe and sound manner, with depositors’ funds being protected. The Bank’s regulatory functions are also designed to promote fair competition among banks, maintain an efficient payment system, and enforce adherence to statutory and regulatory requirements.

Key Regulatory Functions

  • Licensing
  • Withdrawal of licenses
  • Examination and monitoring of banks
  • Powers and duties of supervisors
  • Protection of the supervisor

Compliance Procedures

In a bid to enhance its compliance procedures, the Bank of Ghana has put in place measures such as:

  • Conducting regular on-site inspections of banks
  • Reviewing financial statements and reports submitted by banks
  • Conducting off-site monitoring of banks’ activities
  • Implementing risk-based supervision
  • Collaborating with other regulatory agencies to enhance compliance

Compliance Department

The Bank of Ghana has also established a Compliance Department to oversee the implementation of its compliance procedures. The department is responsible for:

  • Developing and implementing compliance policies and procedures
  • Conducting regular compliance reviews
  • Providing training on compliance issues
  • Monitoring and reporting on compliance matters

Overall, the Bank of Ghana has put in place a robust regulatory framework aimed at ensuring the stability of the financial system and protecting the interests of depositors and other customers of financial institutions.