Tax and financial law expert, Professor Abdallah Ali-Nakyea, has called for stricter enforcement and accountability in Ghana’s financial sector, urging that banks and financial institutions must no longer be allowed to facilitate or ignore corruption-related transactions, particularly those involving politically exposed persons (PEPs).
Speaking at a forum organised by the Media Foundation for West Africa (MFWA) under the theme “Hidden Riches, Hollow Laws: Dissecting the Loopholes that Fuel Corruption in Ghana”, Prof. Ali-Nakyea criticised the current weak enforcement mechanisms, which allow illicit funds to flow through the banking system undetected and unpunished.
He emphasised that the fight against corruption must go beyond prosecuting individuals who embezzle funds to include the institutions that enable them.
“If we are serious about fighting corruption, we must also go after the enablers, the banks that fail to report, that look the other way, or that allow accounts to be used as laundering pipelines,” he said.
He cited Section 373 of the Companies Act, 2019 (Act 992), which mandates the Registrar of Companies to maintain a central register of beneficial ownership in collaboration with anti-corruption agencies like the Financial Intelligence Centre (FIC) and the Economic and Organised Crime Office (EOCO).
However, he noted that this mandate has not been fully enforced, allowing corrupt actors to mask their identities behind opaque corporate structures.
Prof. Ali-Nakyea also warned that the lack of vigilance from banks has contributed to the collapse of hundreds of microfinance institutions, which were plagued by regulatory failures and the misuse of funds.
“Financial institutions must be proactive in flagging irregularities, especially when linked to politically exposed persons or state-funded projects,” he said.
He called on the Bank of Ghana and the FIC to strengthen oversight mechanisms, ensure compliance without political interference, and impose sanctions on non-compliant institutions.
“The same failure to detect suspicious activities is what contributed to the collapse of many microfinance institutions. Yet, some banks continue to act as if it’s business as usual,” he added.
To combat corruption more effectively, Prof. Ali-Nakyea recommended a multipronged approach, including; tighter bank supervision, mandatory anti-money laundering training for staff, real-time technological upgrades to detect fraudulent transactions and stronger public participation and institutional enforcement.
He stressed that financial institutions have both a legal and ethical obligation to identify and report suspicious transactions. “Corruption is not only about the one who steals, but also about those who help hide the loot,” he added.
Prof. Ali-Nakyea’s remarks serve as a rallying call for stronger institutional action, better regulation, and shared responsibility in ending impunity within Ghana’s financial system.
