Financial Crime World

Ghana’s Bank of Ghana and Financial Intelligence Centre Impose Penalties on Banks and SDIs for AML/CFT Breaches

New Administrative Penalties for AML/CFT Regulations Violations

The central banking and financial regulatory bodies in Ghana, the Bank of Ghana and Financial Intelligence Centre, have introduced new administrative penalties for Banks and Specialized Deposit-Taking Institutions (SDIs) in case of a breach of Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) regulations.

Offenses and Associated Penalties

The following offenses will result in penalties, as outlined in a document issued by the Bank of Ghana:

  1. Failure to appoint an Anti-Money Laundering Reporting Officer (AMLRO):

    • Banks: 4,000 penalty units
    • SDIs: 2,000 penalty units

  2. Failure to develop and implement an Internal Risk Assessment Framework:

    • Banks: 4,000 penalty units
    • SDIs: 2,000 penalty units

  3. Failure to conduct effective Customer Due Diligence (CDD):

    • Banks: 2,000 penalty units
    • SDIs: 2,000 penalty units

  4. Failure to provide access to information to the Bank of Ghana and the Financial Intelligence Centre: 2,000 penalty units

Regulatory Framework and Enforcement

These penalties are based on the Bank of Ghana Act, the Anti-Money Laundering Act, the AML/CFT Guideline for Banks and Non-Bank Financial Institutions, and the FATF Recommendations. The Bank of Ghana, as the competent supervisory body, has the power to administer additional sanctions. Possible additional sanctions include:

  • Caution or reprimands
  • Direction disqualifying a person from being concerned in the management of a regulated entity
  • Suspension or revocation of authorizations
  • Cease and desist orders

Effective Date And Importance

These penalties come into effect on August 1, 2018. The new penalties aim to encourage financial institutions to strictly adhere to AML/CFT regulations. Institutional misconduct could result in reputational damage and loss of public trust in the financial sector.

Additional Considerations

The penalties listed above are not exhaustive as the Bank of Ghana may impose different penalties depending on the nature, seriousness, and impact of each contravention. The goal is to create a more robust regulatory framework and maintain the integrity of Ghana’s financial sector against the risks of money laundering, terrorist financing, and the proliferation of weapons of mass destruction.