BoG suspends Consolidated Bank Ghana’s forex trading licence for one month over regulatory breaches

The Bank of Ghana (BoG) has announced a suspension of the Foreign Exchange Trading Licence of Consolidated Bank Ghana (CBG), effective November 26.

This move comes as a punitive measure following several breaches of foreign exchange market regulations by CBG.

According to a statement signed by Sandra Thompson, Secretary of the Bank of Ghana, the one-month suspension is in line with Section 11 (2) of the Foreign Exchange Act, 2006 (Act 723).

The decision was taken after the central bank identified violations related to the Updated Guidelines for Inward Remittance Services for Payment Service Providers issued in November 2023, as well as the Anti-Money Laundering and Combating the Financing of Terrorism & Proliferation of Weapons of Mass Destruction (AML/CFT&P) Guidelines for Accountable Institutions, dated December 2022.

The Bank of Ghana’s action is aimed at reinforcing compliance with the country's financial regulations, particularly in the area of foreign exchange trading.

The central bank highlighted that CBG's infractions undermined the integrity of the foreign exchange market and violated key regulations designed to ensure the stability and security of Ghana’s financial system.

"The licence will be restored at the end of the one-month suspension period once the Bank of Ghana is satisfied that CBG has put in place effective controls to ensure strict adherence to the foreign exchange market regulations," part of the Central Bank's press release said on Tuesday, November 12.

In the statement, the Bank of Ghana issued a stern warning to all players in the foreign exchange market, emphasising the need for strict adherence to applicable forex market regulations and guidelines. The central bank underscored its commitment to upholding the integrity of the financial market and reiterated its zero-tolerance stance on regulatory breaches.

The suspension of CBG’s licence sends a strong message about the central bank’s resolve to crack down on non-compliance and maintain a stable and transparent financial system.

Below is a copy of the release: