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Ghana’s Enhanced Due Diligence Requirements: A Guide to Identity Verification and Politically Exposed Persons

Understanding the Regulations and Best Practices for Due Diligence in Ghana’s Financial Sector

ACCRA, GHANA - In a bid to combat money laundering and terrorist financing, Ghana’s financial regulatory bodies have introduced enhanced due diligence requirements. These measures aim to ensure that financial institutions verify the identity of their customers and detect potential risks associated with Politically Exposed Persons (PEPs).

Identity Verification: A Crucial Step

In accordance with Ghana’s regulations, financial institutions are required to conduct identity verification for all customers, including individuals and businesses. This involves verifying the customer’s name, date of birth, and other relevant information against public records and watchlists.

Guidelines for Identity Verification

Shufti Pro, a leading provider of anti-money laundering (AML) and know-your-customer (KYC) solutions, has outlined the following guidelines for identity verification:

• Verify customer information through multiple sources, including government records and public databases.
• Conduct regular updates to ensure accuracy and completeness of customer data.
• Implement robust controls to prevent unauthorized access to sensitive information.

Politically Exposed Persons: A Higher Risk Profile

Ghana’s regulations also require financial institutions to identify and verify the status of PEPs. These individuals, who hold or have held public office or are closely related to them, pose a higher risk profile due to their potential exposure to corrupt practices.

Identifying PEPs with Shufti Pro’s AML Screening Service

Shufti Pro’s AML Screening service provides an efficient way to identify PEPs by screening customer data against global watchlists and databases. This includes information on compromised PEPs, sanctioned individuals, and other high-risk entities.

Reliance on External Services: A Viable Option

Ghana’s regulations permit financial institutions to seek the services of third-party providers for due diligence purposes. Shufti Pro offers its expertise as an external third-party service provider, helping institutions maintain compliance with AML and KYC obligations while minimizing internal costs and resources.

Record Retention: A Key Compliance Requirement

In accordance with Ghana’s regulations, financial institutions are required to retain due diligence data for a minimum period of five years. This information must be collected from the relevant third-party provider without undue delay.

Conclusion

Ghana’s enhanced due diligence requirements aim to strengthen the country’s financial sector by promoting transparency and accountability. By understanding these regulations and implementing best practices in identity verification, PEP detection, and record retention, financial institutions can mitigate risks and ensure compliance with regulatory obligations.