Financial Crime World

Bank of Ghana Introduces Risk-Assessment Framework for Artificial Intelligence-Based Institutions

Regulating AI Activities in Ghana

The Bank of Ghana (BOG) has introduced a risk-assessment framework to regulate the activities of artificial intelligence-based institutions (AIs) in the country. This move aims to ensure that AIs comply with anti-money laundering and combating the financing of terrorism (AML/CFT) obligations, while minimizing the risks associated with money laundering, terrorist financing, and proliferation financing (ML/TF&PF).

Key Provisions of the Framework

  • Compliance Commitment: AIs must declare their commitment to comply with all requests made by relevant authorities and provide information on ML/TF&PF.
  • Regulatory Power: The BOG has given itself the power to initiate and act on requests from foreign counterparts, impose administrative penalties for non-compliance, and issue guidelines and notices to ensure compliance.
  • Policies and Procedures: AIs are required to develop and implement policies indicating their commitment to comply with AML/CFT obligations. They must also formulate internal rules, procedures, and controls to deter criminals from using their facilities for ML/TF&PF activities.
  • Risk-Based Approach: The BOG has introduced a risk-based approach to assessing AML/CFT risks, which requires AIs to identify, assess, and understand their ML/TF&PF risks in relation to their customers, countries or geographical areas, products and services, transactions or delivery channels.

Implementation Requirements

  • Regular Risk Assessments: AIs are required to conduct regular risk assessments and submit reports to the BOG and the Financial Intelligence Centre (FIC) within a two-year cycle.
  • Risk Assessment Updates: The framework requires AIs to review and update their risk assessment frameworks in response to significant occurrences or changes in the ML/TF&PF landscape.

Enforcement and Supervision

  • Information Requests: The BOG has given itself the power to request information from AIs, including access to records, documents, or any other information relevant to the supervision and monitoring of AIs.
  • Compliance Feedback: The regulator will provide feedback on compliance with obligations under the Act and approve the appointment of anti-money laundering reporting officers (AMLROs) for AIs.

Effective Date

The new framework is expected to come into effect in January 2023, and all AIs are required to comply with its provisions by that date.