BoG cautions banks against money laundering

The Bank of Ghana (BoG) has cautioned banks in the country to be vigilant in order not to accommodate money launderers, particularly in their bid to increase their customer base as well as expand their operations.

This, according to the Central Bank, comes with the risk of serving undesirable customers who perpetrate money laundering.

Ghana has made great strides in combatting the menace of money laundering, culminating recently in its removal from the list of blacklisted countries that have failed to meet international standards on AML/CFT.

Mr. Franklin Belnye, Head-Banking Supervision Department of BoG who said this, noted that it is imperative for Banks to comply with existing banking laws and regulations, particularly with those relating to know your customer and customer due diligence (KYC/CDD) so as to weed out customers suspected of the appalling act.

Mr. Belnye, speaking at the inauguration of uniBank Techiman branch, pointed out that although improvements have been made in the area of combatting money laundering, there is still a lot to be done so that we [Ghana] do not slip back into the pool of blacklisted countries in the world.

“Staffs of banks need to be trained on ways to easily detect money laundering,and how to combat these crimes. This is in the interest of the banks and the economy as a whole. All hands must be on deck to ensure ongoing compliance with domestic and international standards of financial integrity,” he advised.

On the management of increasing risks associated with Banks, the Central Bank official charged Banks to continuously assess their risk profile - especially when venturing into new areas - and map out strategies to mitigate the consequences of risks identified.

“Failure to manage risk effectively could result in losses, which when uncontrolled could ultimately affect the whole banking system through loss of reputation, trust and confidence,’ he warned.

Touching on e-banking, Mr. Belnye urged banks to explore that avenue to reach out to many, especially for the less-populated areas beyond what he termed the “bricks and mortar” model of banking.

He said though opening branches promotes employment, improves access and increases visibility, it is appropriate for Banks to explore the options provided by branchless banking in line with the emerging trend in the banking industry worldwide.

“These technologies have been proven and can deliver low-cost, efficient financial services to hitherto excluded people. Applying basic tools such as the e-zwich card, mobile phone and other smart cards in providing access to financial services in remote areas should be considered, “he added.