The Bank of Ghana (BoG) has announced the suspension of Consolidated Bank Ghana’s (CBG) Foreign Exchange (forex) Trading License for a period of one month, effective from 26th November 2024. This action BoG says comes in response to a series of regulatory breaches identified by the central bank, including violations of foreign exchange market regulations, the Updated Guidelines for Inward Remittance Services, and the Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) Guidelines.

In a statement released on Monday, the Bank of Ghana outlined that CBG’s suspension was triggered by its failure to adhere to key aspects of the Foreign Exchange Act, 2006 (Act 723), as well as the most recent guidelines set for the sector. Specifically, the breaches pertain to the Updated Guidelines for Inward Remittance Services for Payment Service Providers, dated November 2023, and the AML/CFT&P Guidelines for Accountable Institutions, issued in December 2022.

The Bank of Ghana emphasized that the suspension would remain in effect for one month, with the potential for reinstatement of CBG’s forex trading licence if the bank satisfactorily addresses the identified issues. The central bank further clarified that the suspension period would provide CBG with an opportunity to implement effective controls to ensure full compliance with the nation’s forex regulations.

“The Bank of Ghana will closely monitor the situation and will only lift the suspension once it is satisfied that CBG has taken appropriate corrective measures and is in full compliance with the relevant foreign exchange market regulations,” the statement read.

The suspension of CBG’s forex trading license is the latest in a series of regulatory actions taken by the Bank of Ghana in recent times including a suspension to Taptap send to ensure the proper functioning of the foreign exchange market and to combat financial crimes such as money laundering and terrorism financing.

As part of its corrective actions, CBG will need to implement enhanced controls to align its operations with the regulatory standards set forth by the Bank of Ghana. This may include improving internal monitoring systems, reinforcing staff training on compliance issues, and bolstering its reporting mechanisms to ensure that all foreign exchange transactions are conducted in accordance with the law.

The Bank of Ghana has assured the public that it remains committed to ensuring the continued integrity and stability of Ghana’s financial markets, with a firm focus on upholding regulatory compliance across the sector.

The license it expect to be restored at the end of the one-month suspension period once the Bank of Ghana is satisfied that CBG has put in place effective controls to ensure strict adherence to the foreign exchange market regulations.

Here is a full statement from the BoG