Investment scams: Verify licensing status before depositing with entities – BoG cautions public

The Bank of Ghana (BoG) has issued a caution to the public to be cautious of scammers operating under the guise of “foreign investors”.

The central bank urged individuals to always verify the licensing status of such entities before depositing their money.

In a notice dated May 9, and signed by the Secretary of the Bank, Sandra Thompson, the central bank stated that it has not licensed any individual or entity currently posing as foreign investors and inviting the public to deposit funds with them.

“These scammers are using a number of platforms and making promises to induce unsuspecting victims to invest,” BoG said.

It explained that the activities of these so-called investors fall under deposit-taking businesses, which, under section 4 of the Banks and Specialized Deposit-Taking Institutions Act, 2016 (Act 930), can only be undertaken by a body corporate licensed by the Bank of Ghana.

“The public is encouraged to verify with the Bank of Ghana or other relevant authorities the licensing status of an individual or entity before depositing funds,” the central bank stressed.

The caution comes amid growing concerns over fraudulent schemes in the country, especially those exploiting the public’s desire for high returns on investments.

BoG further advised the public to only deposit funds with accountable institutions licensed by the central bank to ensure protection under existing banking laws.

The regulator also cautioned media houses against allowing unverified financial advertisements on their platforms and encouraged them to check with the Bank before airing or publishing promotional content related to investment schemes.