Why sudden unexplained wealth could be money laundering – BoG explains

Ghana’s central bank has provided insights into how sudden unexplained wealth, which could be as a result of money laundering, can land an individual in jail after prosecution.

It explained that persons with sudden unexplained wealth must be ready to provide satisfactory explanations of the source of their wealth to relevant authorities.

In its latest Financial Literacy document, the Bank of Ghana urged the public to remain circumspect when receiving funds from third parties through their bank accounts.

“Sudden unexplained wealth could be as a result of money laundering and you could be prosecuted. Be sure to be in a position to satisfactorily explain your source of wealth.

“Don’t allow a third party to receive and or transfer funds through your bank account. You could be aiding money laundering or terrorist financing which is crime a punishable by law,” the bank said.

The document further detailed what money laundering is, by stating that the act is “the process whereby money obtained from unlawful activities such as drug trafficking and corruption is legitimized through complex transactions and processes called ‘cleaning’ to hide its illegal source.”

It also added another act which is deemed punishable by law; ‘Terrorism Financing,’ which it said can have potentially devastating economic, security and social consequences for nations, businesses, and individuals.

“Terrorist financing includes the provision of funds and financial support to individuals, state and non-state actors for the purpose of extremist acts and the promotion of terrorism and terrorist organizations.

“Financing of terrorism is a crime and is punishable by law. When you provide your legitimately or illegitimately acquired funds/assets for terrorist activities or organizations, you are financing terrorism. Be careful you do not become a conduit for such activities.

“You may be required to disclose and prove the source of funds used to undertake transactions at all Bank of Ghana licensed and regulated financial institutions,” the Bank said.

On December 29, 2020, Ghana enacted a new Anti-Money Laundering Act, 2020 (Act 1044) which seeks to consolidate the laws relating to the prohibition of money laundering.

The Act imposes stringent sanctions for various money laundering infractions in the form of fines and imprisonment.



MA/AE