The Bank of Ghana (BoG) has suspended the foreign exchange trading licenses of Guaranty Trust Bank and FBN Bank for breaching the Foreign Exchange Market regulations.
According to the BoG, this significant action underscores the importance of adhering to regulatory compliance of the foreign exchange market.
In a statement issued Monday, March 04, 2024, the central bank said the two banks engaged in instances of fraudulent documentation in their foreign exchange operations.
The suspension, effective March 18, 2024, will last for a period of one month.
It continued that the action was taken in accordance with section 11(2) of the Foreign Exchange Act 2006(ACT 723).
“The license will be restored at the end of the one month suspension period once the Bank of Ghana is satisfied that they have put in place effective controls to ensure strict adherence to the foreign exchange market regulations,” the release stated.
Similarly, in June 2023, the central bank, fined and suspended the Foreign exchange license of Fidelity Bank for breaching some regulations of the Forex Exchange Act. According to the BoG, the suspension of the bank’s license was due to a breach in section 3.4, 3.5, and 3.9 of the Ghana Interbank Forex Market Conduct rules.
The Ghana Foreign exchange Act 2006, also known as ACT 723 became effective on December 29, 2006 to govern the buying, selling and exchange of the foreign currency and as well provide guidelines for the management and supervision of foreign exchange dealings by financial institutions. Since then, the central bank has issued notices to banks and all financial institutions, providing guidelines on the new foreign exchange Act.
The BoG in its sanctioning of the two banks yesterday, cautioned foreign exchange market players to strictly adhere to the forex market regulations and guidelines.
By Abraham Abudulai Ayagri
