Ghana’s Central Bank has suspended the foreign exchange license of Guaranty Trust Bank and FBN Bank for one month, effective March 18, three months after it barred eight money transfer organisations (MTOs) from offering remittance services without regulatory approval as the apex bank seeks to regulate the foreign exchange market.
The affected banks committed various breaches of the foreign exchange market regulations, including submitting fraudulent documentation in their forex operations, the apex bank said in a statement on Monday.
In a statement issued on Tuesday, Guaranty Trust Bank said it is “actively collaborating with the Bank of Ghana to swiftly address the trade-related issues leading to the suspension.” The bank also reassured customers that all other business operations remained unaffected as the suspension was limited to its foreign exchange segment.
The suspension is in line with Section 11 (2) of the Foreign Exchange Act 2006, which gives the Bank of Ghana the power to suspend a license for a period instead of revoking it.
The Bank of Ghana said in a statement that it would restore the banks’ licenses after one month if it is satisfied that the banks “put in place effective controls” to ensure strict adherence to regulations. The apex bank also warned other financial institutions and called for strict adherence to forex market regulations and guidelines.
Last week, the Central Bank of Nigeria revoked the license of more than 4,000 Bureau De Change operators (BDCs) for failing to pay necessary fees, render returns or comply with anti-money laundering and terrorism financing regulations.
