Financial Crime World

Ghana’s National Risk Assessment Report: Money Laundering/Terrorist Financing Risks

Overview of the National Risk Assessment (NRA) Review Process

The National Risk Assessment (NRA) review was conducted to assess Ghana’s money laundering/terrorist financing (ML/TF) risks, identify new threats, and allocate resources for prevention, investigation, and prosecution. The process involved eight working groups using the World Bank’s Risk Assessment tool, with representation from various sectors, including financial institutions, regulatory bodies, and non-profit organizations.

Limitations of the NRA Process

The report highlights several limitations, including:

  • Access to Data: Limited access to data due to some respondents not having information or a statistical unit.
  • Inadequate Information: Some institutions did not provide required information, and those that did provided it late.
  • Data Validation: The accuracy and integrity of the data/information provided were difficult to validate.
  • Understanding Issues: A lack of clear understanding of issues among sampled respondents affected responses.

Key Findings of the NRA Process

The NRA process identified several key findings:

  • Cash-Based Economy: Ghana’s cash-based economy has grown significantly, making the financial system vulnerable to ML/TF risks.
  • Rampant Crimes: Crimes such as fraud, stealing, robbery, drug trafficking, corruption, and tax evasion are rampant in Ghana.
  • Exposed Sectors: The extractive, petroleum, and hotel sectors have exposed the threat of ML/TF risks.
  • Cybercrime: Cybercrime is a significant issue in Ghana.

Rating and National Vulnerability

The overall threat was rated as medium-high, and the national vulnerability focused on 24 areas with varying levels of capacity to detect and prevent ML/TF.

Desired Outcomes and Achievements

The desired outcomes of the NRA process were achieved, including:

  • National AML/CFT Policy: Developing a National AML/CFT Policy document and Action Plan.
  • Resource Allocation: Allocating resources for AML/CFT activities.
  • Guidance Revision: Revising or developing guidance for “Accountable Institutions” to ensure compliance with the AML/CFT regime.

Conclusion

The NRA review process supports Ghana’s fight against money laundering, illicit financial flows, and transnational organized crimes.