Financial Crime World

Title: New Legal Frameworks Bolster Ghana’s Fight Against Financial Crimes

Ghana’s Robust Payment System: An Overview

Ghana’s financial sector is strengthening its defense against financial crimes by implementing new legal frameworks and regulatory enhancements. This article highlights some of the key legislations and operational guidelines that are shaping Ghana’s payment system.

Ghana’s payment system rests on a solid foundation of laws, rules, and guidelines from the Bank for International Settlements (BIS) Committee on Payment and Settlement Systems (CPSS) and the International Organization of Securities Commissions (IOSCO). Some of the crucial laws applicable to payment instruments, institutions, clearing, and settlement systems in Ghana are:

  1. Bank of Ghana Act, 2002 (Act 612): This law empowers the Bank of Ghana (BOG) as the regulator and supervisor of payment and settlement systems in the country, including facilitating cheque and other credit instrument clearing for banking institutions.
  2. Payment Systems Act, 2003 (Act 662): This Act permits BOG to establish, manage, and operate payment, funds transfer, clearing, and settlement systems. Key provisions include transparency, minimum obligations, irrevocability, finality of payment, admissibility of electronic evidence, dispute resolution, and miscellaneous provisions.
  3. The Bills of Exchange Act, 1961 (Act 55): An English adaptation, this Act outlines the process for drawing, accepting, and paying cheques in Ghana, with a review currently underway to update it.

Other significant laws include the Foreign Exchange Act 2006, Credit Reporting Act 2007, Central Securities Depository Act 2007, Anti-Money Laundering Act 2008, and Electronic Transactions Act 2008.

Rules, Regulations, and Guidelines

Beyond legal frameworks, Ghana’s financial sector is regulated by a variety of rules, regulations, and guidelines that dictate specific systems’ operations. For example:

  • Cheque Clearing with Cheque Truncation Guidelines and Operational Procedures: These guidelines detail the procedures for cheque clearing with truncation, focusing on payment instruments standards, and operations at the collecting bank, clearing house, and clearing house management.
  • Ghana Bankers’ Clearing House Rules: The Ghana Bankers’ Clearing House Rules provide a framework for efficient clearing and settlement, covering areas such as membership, sanctions, and dispute resolution.
  • Ghana Automated Clearing House Direct Credits & Debits Guidelines and Operational Procedures: Similar to the above, these guidelines cover direct credits and debits and encompass provisions related to processing procedures, management of the clearing house, and membership.
  • Ghana Inter-bank Settlement (GIS) System Terms and Conditions: These terms and conditions outline the contractual basis for the operation of the large-value funds transfer system, ensuring a secure and efficient large-value funds transfer mechanism in Ghana.

As the financial ecosystem continues to evolve, Ghana’s regulatory authorities are steadily crafting new regulations and reviewing existing ones to stay abreast of technological advancements and other developments.

Conclusion

In conclusion, Ghana’s financial sector is undergoing significant changes and adaptations to better safeguard financial transactions against financial crimes. The implementation of these new legal frameworks and regulatory enhancements has bolstered Ghana’s payment system, providing a strong foundation for sustainable growth and development.