Ghana Cracks Down on Financial Crimes: New Anti-Money Laundering Act Imposes Tough Penalties

Ghana’s Parliament passed the new Anti-Money Laundering Act (Act 1044) on December 29, 2020, aimed at strengthening the country’s laws against money laundering and aligning them with international standards.

Key Objectives of Act 1044

Consolidate previous legislation (2008’s Anti-Money Laundering Act, 749)
Address deficiencies and combat money laundering, tax evasion, terrorism financing, and other unlawful activities
Empower the Financial Intelligence Centre (FIC) to play a more significant role

Enhanced Role of the Financial Intelligence Centre (FIC)

Collaborate with investigative, security, and intelligence agencies
Exchange critical information with foreign counterparts
Oversee accountable institutions and implement new regulations

Broadened Scope of Money Laundering

Act 1044 covers a wider range of unlawful activities:

Fraud, bribery, corruption
Human trafficking, counterfeiting currencies
Insider trading, environmental crimes
Robbery, piracy, or smuggling

Accountability for Cryptocurrencies and Digital Assets

Introduction of concept of a virtual asset service provider
Emphasis on accountability for cryptocurrencies and digital assets

Severe Penalties for Money Laundering

Individuals: fine not less than 100% to 500% of proceeds of crime
Corporations: fine not less than 300% of proceeds

Impact on Ghana’s Business Reputation

Expected to bolster Ghana’s ongoing efforts to strengthen its anti-money laundering framework and enhance its reputation as a reliable business partner.

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