The Bank of Ghana (BoG) has identified significant internal control weaknesses in the foreign exchange transfer operations of some Ghanaian banks, raising concerns about rising operational, fraud, and reputational risks within the financial system.
The central bank said recent supervisory examinations and market surveillance activities revealed lapses and inconsistencies in the way certain banks initiate, process, approve, and report foreign currency transfers.
According to the BoG, the deficiencies have increased vulnerability to fraud and financial crime, while undermining the integrity, transparency, and orderly functioning of Ghana’s foreign exchange market.
In response, the BoG has warned that the renewal and continued validity of commercial banks’ Foreign Exchange Trading Licences will be strictly tied to demonstrable and sustained compliance with regulatory requirements and sound internal control standards.
To close the identified gaps, the central bank has directed all licensed banks to immediately implement and consistently enforce a seven-point corrective action plan.
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Key measures include the introduction of robust verification procedures and multi-tier authorisation for all foreign exchange transfer instructions, alongside strict adherence to Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) requirements.
Banks are also required to ensure clear segregation of duties among staff involved in initiating, processing, and approving forex transactions to minimise fraud risks.
In addition, institutions must deploy active, system-based monitoring tools to detect unusual transaction patterns and unauthorised system access.
The BoG further directed banks to conduct daily reconciliation of all forex accounts, with any discrepancies resolved within 24 hours.
Institutions must also carry out periodic internal audits, escalate findings to their Boards and the central bank, and organise regular training programmes for relevant staff on foreign exchange regulations and operational procedures.
The central bank cautioned that failure to comply with the directives constitutes a breach of prudential and foreign exchange regulations, and may attract sanctions under the Banks and Specialised Deposit-Taking Institutions Act, 2019 (Act 930), as well as the Foreign Exchange Act, 2006 (Act 723).
The BoG has therefore called on all licensed dealer banks to fully cooperate and strictly comply with the new measures, stressing that this is critical to safeguarding the credibility, integrity, and stability of Ghana’s financial system.
