The Chief Executive Officer of Financial Intelligence Centre (FIC), Kwadwo Twum-Boafo has said the various mobile money platforms have now become conduits for money laundering.
He claims this is because the banks and other financial institutions have strengthened their financial regulations, restricting certain huge transactions. Hence, individuals have turned to the mobile money platforms for their illicit activity.
He explained that for the mobile money platforms, monitoring and regulation is a bit difficult because of its virtual nature and that has made it possible for individuals to exploit the platforms for money laundering.
“The banks have tightened their regulations. The Fintech and Innovations Department of the BoG and the Financial Stability department are very strict on financial transaction. Indeed, what I know, in Ghana today, you can’t give a third party a cheque of more than GHC5000.
“As we speak, you can’t even transfer foreign currency to an individual without certain checks on the individual. So, they are very strict,” he stated.
He continued: “the platform that most of them (money launderers) use will be the mobile money platform which is more or less virtual. As for virtual assets, it is more difficult to monitor.”
Mr. Twum-Boafo stressed that Telecommunication companies are also not fully complying with the FIC in terms of dealing with these financial crimes unlike the banks.
“We are able to freeze mobile money accounts. They (Telcos) are enjoined to be compliant but them being fully compliant, that’s another discussion for another day.
“I talked about the front foot approach that we need and they (Telcos) in particular are not in compliance as much as I would like. The banks are but Telcos, no,” he stated.
When asked whether Telecommunication companies are being fully compliant and reporting issues of money laundering and fraud, he replied “not as much as I would like.”
