Financial Crime World

Title: Ghana’s Steps Towards Combat Money Laundering: An Update on the AML/CFT Legal Frameworks

Ghana’s Placement on the FATF Grey List and the Response

  • Ghana, also known as “Gateway to Africa,” faces international pressure to improve its Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) frameworks.
  • The Financial Action Task Force (FATF) identified deficiencies during the second round of mutual evaluation, resulting in Ghana’s listing on the grey list.
  • Ghanaian authorities remain committed to updating their legislation to international standards.

The New Anti-Money Laundering Act 2020 (Act 1044)

  • Replaces the 2008 AML Act (Act 749) and came into effect on 1st February 2021.
  • Expands the scope of unlawful activities, extends oversight, and imposes stricter penalties on offenders.

Key Provisions of Act 1044

  • Introduction of the Virtual Asset Service Provider concept for cryptocurrencies and digital assets.
  • Wider definition of money laundering offenses.
  • Establishment of the Economic and Organized Crime Office (EOCCO).

Increased Penalties for Money Laundering Offenses

  • Individuals now face fines ranging between 100% and 500% of the proceeds of the crime.
  • Corporations are liable for at least 300% of the ill-gotten gains.

The Role of the Financial Intelligence Centre (FIC)

  • Assumes a pivotal role in the fight against money laundering, tax evasion, and other financial crimes.
  • Facilitates international collaborations and data-sharing.
  • Analyses suspicious transaction reports and oversees accountable institutions and designated non-financial businesses and professions (DNFBPs).

Primary Legislation to Counteract Money Laundering, Terrorist Financing, and Proliferation Financing (ML/TF&P) in Ghana

  • Anti-Terrorism Act, 2008
  • Economic and Organized Crime Act, 2010
  • Various AML regulations and amendments between 2011 and 2012
  • Criminal Offences Amendment Act 2012
  • Immigration Amendment Act 2012

Key Institutions in Implementing and Enforcing AML/CFT Laws in Ghana

  • Financial Intelligence Centre
  • Bank of Ghana
  • Securities Exchange Commission
  • Ghana Pensions Authority
  • National Insurance Commission
  • Gaming Commission
  • Inter-Governmental Action Group Against Money Laundering and Terrorist Financing in West Africa (GIABA)
  • Economic and Organized Crime Office
  • Ghana Police Service
  • Bureau of National Investigation
  • Office of Special Prosecution

As Ghana continues to strengthen its AML/CFT frameworks, these institutions will play vital roles in their implementation and enforcement.