BoG shuts down three illegal banks

The Bank of Ghana (BoG) has shut down three financial institutions for engaging in illegal activities.

The companies are CB Net Marketing Concepts, E-Finance and More and Diamond Investment Limited.

A statement issued by the Central Bank said CB Net operates what is suspected to be a ponzi scheme in Accra, Tema and other vicinities.

E-Finance and Diamond Investment operating in the Eastern and Brong Ahafo regions are offering attractive but non-sustainable packages to customers.

Managers of the companies have been given one month to refund the deposits or face prosecution.

Meanwhile, Governor Dr. Henry Wampah said the regulator has not received any request for the establishment of a new bank this year.

Dr Wampah said there is also no request for the establishment of an Islamic bank despite the calls for Islamic banking services.

Under Islamic banking services, customers can access interest free loans without providing landed properties as collaterals.

Profits are also shared on pre-arranged terms.