Ghana Tightens Anti-Money Laundering Laws
Strengthening the Fight Against Financial Crimes
In a significant move, Ghana has enacted a new Anti-Money Laundering Act (Act 1044) to enhance its anti-money laundering framework and align with international standards. The legislation came into effect on December 29, 2020, and aims to address the shortcomings of its predecessor, Act 749.
Key Changes in Governance and Administration
The new law brings about substantial changes to the governance and administrative structure of the Financial Intelligence Centre (FIC). The FIC is now tasked with accelerating the fight against money laundering, tax evasion, terrorism financing, and other unlawful activities. To achieve this goal, the FIC will collaborate closely with investigating authorities, security agencies, and foreign counterparts.
Enhanced Scope of Illegal Activities
The Act expands the scope of illegal activities to include:
- Fraud
- Bribery
- Corruption
- Human trafficking
- Counterfeiting currencies
- Insider trading
- Environmental crimes
- Robbery
- Piracy
- Smuggling
Recognition of Virtual Asset Service Providers
The Act introduces the concept of virtual asset service providers, acknowledging the growing importance of blockchain technology and cryptocurrencies. This move highlights Ghana’s commitment to staying ahead in the rapidly evolving digital landscape.
Compliance and Sanctions
To ensure compliance with the law, the Act imposes stringent sanctions for money laundering offenses, including fines and imprisonment:
- Individuals: Fined not less than 100% and not more than 500% of the proceeds of the crime
- Corporate entities: Fined up to 300% of the proceeds
Implementation and Impact
The new legislation demonstrates Ghana’s commitment to preventing, detecting, and prosecuting anti-money laundering violations. Its implementation is expected to support ongoing efforts to strengthen the country’s anti-money laundering framework and align it with international standards.
Conclusion
Ghana’s Anti-Money Laundering Act (Act 1044) marks a significant milestone in the country’s fight against financial crimes. The legislation brings about substantial changes to the governance and administration of the FIC, expands the scope of illegal activities, recognizes virtual asset service providers, and imposes stringent sanctions for non-compliance. Its implementation is expected to have a positive impact on Ghana’s anti-money laundering framework and its alignment with international standards.