Ghana Seeks To Address Money Laundering Deficiences

From: William Nana Yaw Beeko [Network Organizer]

After being downgraded by the international Financial Action Taskforce (FATF) in the crusade against Money Laundering (ML) and Financing Terrorism (FT) activities, Ghana is seeking to redeem its image through the implementation of a robust Anti-Money Laundering (AML) Counter Financing Terrorism (CFT) compliance measures.

It is against this background that the Bank of Ghana (BoG) is urging banking and non-banking financial institutions to adopt the practice of due diligence to check suspicious transactions and report to the appropriate quarters for further actions.

The Governor of the Bank of Ghana, Mr. Kwesi Bekoe Amissah-Arthur, made the call when he addressed participants at a two-day workshop for Commercial Bank Chief Executives and Chief Compliance Officers towards raising awareness against the deleterious effects of Money Laundering and Terrorist Financing (ML/TF) in the ECOWAS region.

The workshop which is being organized in Accra by the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA) has about 150 chief banking officers from ECOWAS countries in attendance.

This is also meant to intensify and strengthen the ECOWAS regional alliance in the crusade against money laundering and terrorism financing in West African states.

The prime object of the workshop is to sensitize and raise the awareness of commercial bank executives and chief compliance officers on AML/CFT regimes, especially the mandate of GIABA in the fight against the scourges of money laundering and terrorist financing.

He said as a result of the feeble technical and administrative capacity of intelligence units and law enforcement agencies, the combat against these organized crimes have led to a lot of deficiencies.

“These create uncertainties for the international financial institutions which do business with our banks since these risks or their perception can adversely affect the flow of financial resources to the sub-region or increase the cost if available,” the BoG Boss stated.

Mr. Amissah-Arthur therefore called for the expedition of action in ensuring that there is effective coordination among all stakeholders to remove all obstacles.

He maintained that following the downgrading of Ghana in February, 2012, banks have now been requested by their correspondents and regulatory bodies to institute enhanced due diligence on certain customers.

He further indicated that compliance officers have been swarmed with additional tasks, by following up on transactions of customers.

“Building an effective and robust AML/CFT regime at the national level requires action at many levels; Governments are expected to set up the appropriate inter-ministerial structures, together with the development of a national strategy for dealing with AML/CFT deficiencies,” the BOG Boss underscored.

He further admonished ECOWAS governments to ensure the passage of the relevant laws that criminalize money laundering and terrorist financing related offences.

“Regulatory authorities are also required to carry out supervisory activities to ensure that banks and other financial institutions are not only effectively implementing the recommendations but ensuring that criminals and their associates are not misusing the banking system,” indicated Mr. Amissah-Arthur.

For his part, the Head of Programmes and Projects at GIABA, Dr. Buno Nduka, who stood in for the GIABA Director-General, Dr. Abdullahi Shehu, pointed out that GIABA is a specialized institution of the Economic Community of West African States (ECOWAS) as well as Financial Action Task Force –Styled Regional Body (FSRB) responsible for combating the scourge of Money Laundering (ML) and Terrorist Financing (TF) in West Africa.

He said GIABA was established by the Authority of Heads of State and Government of the Economic Community of West African States (ECOWAS) in the year 2000 with the mandate to protect the national economies and the financial systems of member States from abuse and the laundering of the proceeds of crimes.

He revealed that the workshop which is the first of its kind in Ghana underscores the necessity to build the capacities of operators in the financial systems.

“To enable GIABA to achieve its objectives, the ECOWAS Council of Ministers, in December, 2006 approved the GIABA Strategic Action Plan 2007-2009. The implementation of this Action Plan ended in December, 2009.

....In compliance with the ECOWAS Ministerial Council Regulation adopting measures for the improvement of ECOWAS institutions, an independent consultant was engaged to evaluate the implementation of the Action Plan,” Mr. Nduka said.

He further disclosed that in August 2010, the report of commended GIABA for the modest achievement and in particular, for becoming a veritable focal point for AML/CFT coordination and capacity building in West Africa.

He said in line with the findings of the independent assessor, GIABA has developed and commenced the implementation of a four-year new Strategic Plan 2011-2014 with the overarching goal ‘To Foster, Sustain, And Strengthen A Regional Alliance Of Committed Stakeholders In The Fight Against Money Laundering And Terrorist Financing In West Africa’.

“To meet this goal, GIABA designs its annual work programmes within the context of Results-Based Management Principles (RBM) Principles. One of the areas of priority in the current Strategic Plan is the enhancement of capacities of accountable institutions,” the GIABA Programmes Director stated.

He underscored that the identified deficiencies in the AML/CFT regimes of our member States call for common and coordinated action by all ECOWAS countries.

He continued that the low level of compliance to the FATF Standards by GIABA member States is reminiscence of the environmental peculiarities of the region.

Therefore, there is the need to enhance regulatory and enforcement measures.

“This workshop would ensure that we solicit the support of top management of banks in promoting the implementation of effective AML/CFT measures in the region.

...At the end of the day it is meant to acquaint top management of banks on issues of good corporate governance that are central to promoting the implementation of AML/CFT Compliance Culture required for efficient and sound financial systems.

It will also create the necessary platform to promote networking among operators in the sub-region that will facilitate information sharing and dissemination on AML/CFT issues,” Dr. Buno Nduka stressed.