By Abiola Olawale
The Bank of Ghana has announced its decision to suspend the Foreign Exchange Trading Licences of two Nigerian-owned banks, Guaranty Trust Bank Ghana Limited and FBNBank Ghana Limited.
The suspension which takes effect from March 18, 2024, and lasts for one month, was struck against the two financial institutions over allegations of various breaches of foreign exchange market regulations which include incidents of fraudulent documentation within their foreign exchange operations.
The Ghanaian apex bank said the decision is done in accordance with the Section 11 (2) of its Foreign Exchange Act 2006, noting that the suspension will serve as a stern warning to other players in the foreign exchange market.
The Bank of Ghana also emphasized the importance of strict compliance with all applicable forex market regulations and guidelines, signalling its readiness to enforce regulatory measures to safeguard market integrity.
The statement reads, “Bank of Ghana has suspended the Foreign Exchange Trading Licences of Guaranty Trust Bank Ghana Limited (GTB) and FBNBank Ghana Limited (FBN), effective 18th March 2024, for a period of one month, in accordance with Section 11 (2) of the Foreign Exchange Act 2006, (Act 723).
“This is as a result of various breaches of the foreign exchange market regulations, including fraudulent documentation in their foreign exchange operations which have come to the attention of the Bank of Ghana.
“The licence will be restored at the end of the one-month suspension period once the Bank of Ghana is satisfied that they have put in place effective controls to ensure strict adherence to regulations to the foreign exchange market.
“The suspension serves as a direct consequence of the banks’ failure to comply with established regulations, highlighting the central bank’s zero-tolerance policy towards regulatory non-compliance,” the bank said.
