Ghana was mistakenly blacklisted and declared free later but the harm has already been done

Ghana Flag 10 Ghana was blacklisted for money laundering

Wed, 26 Jan 2022 Source: Joel Savage

Blacklisted countries are jurisdictions with which companies or countries are prohibited from carrying out any sort of financial transaction.

A country is blacklisted if the Financial Action Task Force (FATF) and its member states deem it untrustworthy or to be avoided because anti-money laundering or anti-terrorism financing measures are unsatisfactory.

Last year, following the Belgian government’s decision for the closure of Ghana’s financial accounts at the ING banks in Belgium, Ghana was blacklisted for money laundering.

Later, the European Union revealed that they have taken a measure that Ghana doesn’t deserve. It was definitely a mistake.

Ghana’s Foreign Affairs Minister, Shirley Ayorkor Botchwey, explained that Ghana was blacklisted due to non-compliance with money laundering and terrorism financing regulations, and that placed further burdens on banks that dealt with transactions from such countries.

The claim was confirmed by the Head of Delegation of the European Union to Ghana, Ambassador Diana Acconda.

According to her, Ghana ended up on the list because it failed to comply with checks that forestall possible money laundering and there is no evidence that Ghana was involved in money laundering.

However, despite Ghana being cleared from the list as a money-laundering country, the harm has already been done. This, in turn, has discouraged many western businessmen to invest in the country.

Investments in Ghana gradually declined due to corruption, high customs duties, and tariffs at the ports and harbors but the situation deteriorated affecting the economy when Ghana was mistakenly blacklisted.

Even though the country has been taken from the list of black-listed countries list, the harm is already been done.

Columnist: Joel Savage