Financial Crime World

Compliance Regulations in Banking Industry in Ghana: A Regulatory Framework

The Bank of Ghana is responsible for overseeing all matters related to banking and non-banking financial business in Ghana, aiming to establish a sound, efficient, and customer-centric banking system that serves the interests of depositors, customers, and the economy as a whole.

The regulatory framework within which banks, non-bank financial institutions, and forex bureaux operate in Ghana is governed by several key legislations, including:

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

Regulatory Objectives

The Bank of Ghana is responsible for ensuring the stability of the financial system, facilitating wealth creation, economic growth, and development. To achieve this mandate, the Central Bank exercises its regulatory functions to:

  • Ensure depositors’ funds are safe
  • Maintain solvency, good quality assets, adequate liquidity, and profitability of banks
  • Enforce adherence to statutory and regulatory requirements
  • Promote fair competition among banks
  • Maintain an efficient payment system

Supervisory Functions

The Bank of Ghana’s supervisory functions are designed to be consistent with the Basel Core Principles for Effective Banking Supervision, enhancing the legal and regulatory framework. The laws governing banking operations in Ghana have provisions regarding:

  • Licensing
  • Withdrawal of license
  • Arrangement for examining and monitoring banks
  • Powers and duties
  • Protection of the supervisor

History of the Bank of Ghana

The Bank of Ghana has a rich history dating back to 1958, when it was established after Ghana gained independence. The Central Bank took over from the West African Currency Board and since then has played a crucial role in regulating and supervising the banking industry in Ghana.

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