The Bank of Ghana (BoG) has introduced some ‘robust measures’ to prevent money laundering and other illicit activities in the issuance of the Ghana Gold Coin (GGC).
These measures, according to BoG, are part of its Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) framework.
The BoG says it is in collaboration with the Financial Intelligence Centre (FIC) working to ensure the issuance of gold coins adheres to high standards of transparency and accountability.
“All transactions shall be routed through banks where customers have been subjected to thorough Know Your Customer and Customer Due Diligence checks and sources of funds are proven. In addition, transaction monitoring and reporting of suspicious activities frameworks shall be in place,” the Central Bank has assured.
It has also put systems in place to monitor transactions for any suspicious activity, with mandatory reporting of high-risk activities. Purchases are screened against national and international sanctions lists, and large transactions are subject to additional scrutiny to prevent use for terrorism financing or other illicit activities.
Furthermore, buyers must undergo identity verification, and transactions are limited to prevent circumvention of financial regulations.
It says enhanced systems will track transactions to detect suspicious activities that could indicate money laundering or financing of terrorism. Any suspicious transactions or large-scale purchases will have to be reported to the FIC for further investigation, ensuring that funds used in the purchase of gold coins are legitimate.
The BoG is promoting a risk-based approach, allowing for enhanced due diligence on higher-risk customers while streamlining processes for lower-risk transactions
While these measures are robust, their feasibility largely depends on effective implementation and continuous oversight. If financial institutions and dealers are diligent in applying these protocols, the risk of gold coin transactions being used for money laundering will be significantly reduced.
However, gaps in monitoring or enforcement could still pose challenges, especially in a sector where high-value transactions are involved. Regular audits and updates to the regulatory framework will be essential to ensure the long-term success of these anti-money laundering efforts.
