Regulatory Breaches: Bank of Ghana Suspends GTB, First Bank’s Forex Licences
The Central Bank of Ghana popularly known as Bank of Ghana on Tuesday, March 5, 2024 wield the big stick against Guaranty Trust Bank and First Bank of Nigeria by suspending their foreign exchange licence.
The apex bank of Ghana said that the affected commercial banks committed various breaches of the foreign exchange market regulations, including submitting fraudulent documentation in their forex operations.
A statement by the Bank of Ghana said the suspension will commence on March 18, 2024 adding that the development comes barely three months after it barred eight Money Transfer Organisations (MTOs) from offering remittance services without regulatory approval following the Central Bank of Ghana determination to regulate the foreign exchange market.
The Bank of Ghana said that the suspension is in line with Section 11 (2) of the Foreign Exchange Act 2006, which gives it the power to suspend a licence for a period instead of revoking it.
The apex bank said it would restore the banks’ licences after one month if it is satisfied that they have “put in place effective controls” to ensure strict adherence to regulations.
The Bank of Ghana therefore warned other financial institutions to adhere strictly to forex market regulations and guidelines.
In its swift reaction to the development on Tuesday, Guaranty Trust Bank said it was actively collaborating with the Bank of Ghana to swiftly address the trade-related issues leading to the suspension.
Guaranty Trust Bank in a statement on Tuesday, reassured its customers that all other business operations remained unaffected as the suspension was limited only to its foreign exchange segment.
