Financial Crime World

Title: Administrative Penalties for Money Laundering and Terrorist Financing Contraventions by Banks and SDIs in Ghana

Background

In an effort to combat money laundering, terrorist financing, and the proliferation of weapons of mass destruction in Ghana, the Bank of Ghana (BOG) and the Financial Intelligence Centre (FIC) have outlined administrative sanctions and penalties for banks and Specialized Deposit-Taking Institutions (SDIs) that violate the Anti-Money Laundering (AML) Act, 2008 (Act 749), AML Regulations, 2011 (LI 1987), and other relevant regulations and directives issued by BOG and FIC.

Penalties for Various Contraventions

The document outlines various penalties for several offenses, including:

  1. Failure to appoint an AML Reporting Officer (AMLRO)
  2. Failure to develop and implement an Internal Risk Assessment Framework
  3. Failure to maintain adequate records

The penalties range from 2,000 to 5,000 penalty units for each offense, which in the current exchange rate, is equivalent to approximately $37,000 to $93,000 for GH₵20,000 penalties. The infringements are imposed under the provisions of the Anti-Money Laundering Act, 2008 (Act 749), Anti-Terrorism Act, 2008 (Act 762), Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) Guideline for Banks and Non-Bank Financial Institutions, Banks and Specialized Deposit-Taking Institutions (SDI) Act, 2016 (Act 930), and the FATF Revised Recommendations. The BOG’s power to impose administrative sanctions is based on sections 39(5) and (6) of the Anti-Money Laundering Act.

Importance of Compliance

Both BOG and FIC aim to ensure that accountable institutions comply with AML/CFT requirements and maintain high ethical standards in their business operations.

Key Takeaways

For financial institutions to avoid potential administrative sanctions, they must adhere to these guidelines:

  1. Appoint a designated AML Reporting Officer (AMLRO)
  2. Develop and implement an Internal Risk Assessment Framework
  3. Maintain adequate records

This document serves as an essential tool for financial institutions, providing a summary of the imposed penalties by the Bank of Ghana and Financial Intelligence Centre. However, for complete and accurate information, it’s always recommended to consult the official document or consult with legal experts.