Volunteer information on suspected money laundering, unexplained wealth – BOG to public

Bank of Ghana has urged the public to volunteer information on suspected cases of money laundering and unexplained wealth.

This is to combat financial crimes, sanitize the industry and uphold the integrity of the country’s financial system.

The Central Bank stressed collaborative efforts in identifying and addressing illicit financial activities that pose a threat to the stability and reputation of the banking sector.

The Bank of Ghana gave this advice in a circular on money laundering as part of its financial literacy.

Money laundering is the process whereby money obtained from unlawful activities such as drug trafficking and corruption is legitimized through complex transactions and a process called ‘cleaning’ to hide its illegal source. Both the underlying illegal activities which produce the ‘dirty’ money that has to be ‘washed or cleaned’ and money laundered which seeks to legitimize the proceeds of the illegal activities are punishable by law.

According to the BoG, not only does money laundering undermine the integrity of financial institutions but also has far-reaching consequences for the economy, businesses and society as a whole.

In order to control money laundering and terrorist financing, one may be required to disclose and prove the source of funds used to undertake transactions at all Bank of Ghana licensed and regulated institutions. “Sudden unexplained wealth could be as a result of money laundering and you could be prosecuted. Be sure to be in a position to satisfactorily explain your sources of wealth”, BOG cautioned.

In 2016, a mutual evaluation carried out identified significant deficiencies in Ghana's anti-money laundering, counter-financial terrorism and proliferation financing regime, leading to a greylisting by the Financial Action Task Force.

It was not until 2020 that Ghana was de-listed following extensive reforms to strengthen the regime.

To consolidate the gains, the Bank of Ghana reminded the public that sudden unexplained wealth could be a result of money laundering which could lead to prosecution.

It also advised the public to always be in the position to satisfactorily explain their sources of wealth and reminded them that assets and properties with proceeds from money laundering activities can be confiscated and individuals involved prosecuted.

-Citi Newsroom