Bank Of Ghana Suspends Forex Trading Licenses Of GTB and FBNBank Over Market Regulation Breaches

• Bank of Ghana has sanctioned Guaranty Trust Bank and FBNBank for breaching foreign exchange market regulation rules
• The two banks were found engaging in fraudulent documentation in their forex operations, among other things
• Their suspension is to last a month, after which the BoG will restore their licenses

The Bank of Ghana has suspended the foreign exchange trading licenses of Guaranty Trust Bank Ghana Limited (GTB) and FBNBank Ghana Limited over what it describes as various breaches of market regulation.

The Central Bank accused the banks of engaging in activities including fraudulent documentation in their foreign exchange operations.

The suspension is in accordance with section 11(2) of the Foreign Exchange Act 2006, (Act 723).

The Central Bank, in a statement, said that the suspension takes effect from March 18, 2024, and will last for a month.

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It was, however, quick to add that the licenses will be restored at the end of the suspension period once it is satisfied with the controls instituted to ensure strict adherence to the foreign exchange market regulations.

The Bank of Ghana cautioned foreign exchange market players to adhere strictly to the applicable forex market regulations and guidelines.

Guaranty Trust Bank reacts to the suspension

Guaranty Trust Bank, in reaction to its suspension, said it will work with the Bank of Ghana to address the trade-related issues raised by the regulator.

The bank also said it is working with the relevant government agencies and has reached out to customers who submitted defective documentation to address the issue.

Guaranty Trust Bank concluded that it will strengthen its anti-money laundering policies and implementation to prevent future occurrences.

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Fidelity Bank and First National Bank suspended from foreign exchange trading

The suspension of the two banks follows the previous suspension of two of Ghana's top banks: Fidelity Bank and First National Bank.

The banks were sanctioned by the BoG for breaching the interbank foreign exchange trading rules.

Their foreign exchange trading licenses were also revoked, and they were not permitted to do any foreign exchange transactions for 30 days.

The central bank said in a statement that it hoped the punishment would deter participants in the foreign exchange market from breaching foreign exchange trading rules.

BoG blacklists Wise and 7 other money transfer organisations

Last year, YEN.com.gh reported that the Bank of Ghana released a list of unapproved Money Transfer Organisations (MTOs).

The BoG said the listed organisations, operating within the remittance and Ghana forex market, did not have approval.

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The central bank warned financial institutions against engaging with the blacklisted firms, which included Wise.

Source: YEN.com.gh