Bank of Ghana directs banks to enforce third party identification

The Bank of Ghana (BoG) has issued a notice to banks and special deposit-taking institutions (SDI’s) to enforce the regulations on all third parties making deposits into or withdrawals from an account other than their own.

This notice is in accordance with section 23(7) of the Anti-Money Laundering Act 2008 that requires all Banks and Specialised Deposit-Taking Institutions to “require the full personal details of a person who makes a deposit into or withdrawal from an account on behalf of another person.”

In a public statement, the BoG also urged the general public to take note and be guided accordingly.

Pursuant to the notice, all third parties making deposits into or withdrawals from an account other than their own, shall provide the following information, which includes the Name and address of the third party; a verifiable identification card and a telephone number of the third party to the requisite bank or specialized deposit-Taking institution.

Money laundering

Money-laundering is the process that disguises illegal profits without compromising the criminals who wish to benefit from the proceeds.

The crime has a dynamic three-stage process, involving Placement which requires moving the funds from direct association with the crime, layering – which involves disguising the trail to foil pursuit and integration – which comprises making the money available to the criminal, once again, with its occupational and geographic origins hidden from view.

In 2018, the Financial Intelligence Centre (FIC) noted that it had received 2,010 suspicious transaction reports (STRs) from banks and non-bank financial institutions on suspected money laundering cases from 2010 to 2016.

Effectively, the Centre disseminated 787 out of the 2,010 reports to various law enforcement agencies for appropriate actions to be taken.

Ghana, has since 2014, prosecuted and convicted 11 persons for various money laundering offences and its associated crimes.