Banks, SDI's To Lose Operating License If…

The implementation of the Bank of Ghana’s laws and guidelines on Anti-Money laundering will see a financial entity that falls under the supervisory arm of the Bank of Ghana have their license revoked.

The move is part of broader administrative sanctions that seek to keep banks in compliance with the rules and regulations.

Other administrative sanctions according to the BoG may include; a direction disqualifying a person from being concerned in the management of a regulated financial service provider and suspension of the authorization of a regulated entity, in respect of one or more of its activities, for a period not exceeding 12 months.

A raft of pecuniary penalties will also be placed on Banks and Specialized Deposit-Taking Institutions if they fail to adhere to the laid down laws and procedures.

The penalties range from 2000 to 5000 penalty units and some also differ depending on if the institution that goes in contravention of the guidelines is a bank or specialized deposit-taking institution (SDI).

Some of the offences listed are; failure to give access to information to BOG and FIC or any Competent Authority which carries a minimum of 4,000 penalty units on the Bank and a minimum of 2,000 on the SDI.

Failure to conduct effective Customer Due Diligence (CDD) will attract a minimum of 2,000 penalty units, failure to develop and implement Internal Rules and Policies as well as failure to appoint an AMLRO at management level will carry a minimum of 4,000 penalty units on the Bank & a minimum of 2,000 on the SDI and a minimum of 4,000 penalty units on the bank & minimum of 2,000 penalty units on the SDI respectively.

It is important to note that “where the contravention persists the BOG may impose one or more of the administrative sanctions in addition to the penalties.”

The Anti-Money laundering regulations will take effect from the 1st of August, 2018