Bank of Ghana Suspends Forex Licences Of GTB, First Bank Ghana Subsidiaries Over Alleged Fraudulent Transactions

It is certainly not the best of times for Nigeria with the sweeping erosion of every economic foundations both within the country and offshore.

While the country has been facing extreme uncertainty in its currency at per with other foreign currencies, the latest heat wave is facing one of the Nigeria’s top banks.

The Bank of Ghana has announced the suspension of the Foreign Exchange Trading Licences of Guaranty Trust Bank Ghana Limited (GTB) and FBNBank Ghana Limited (FBN), effective from 18th March 2024, for one month.

This decisive action, according to reports, comes in response to various breaches of foreign exchange market regulations, including incidents of fraudulent documentation within their foreign exchange operations.

According to the central bank, this measure is in strict accordance with section 11 (2) of the Foreign Exchange Act 2006, (Act 723), underscoring the Bank of Ghana’s commitment to maintaining the integrity and stability of the foreign exchange market.

The suspension serves as a direct consequence of the banks’ failure to comply with established regulations, highlighting the central bank’s zero-tolerance policy towards regulatory non-compliance.

The Bank of Ghana has outlined that the suspended licences could be reinstated after the suspension period, contingent on GTB and FBNBank’s implementation of effective controls. These controls must ensure rigorous adherence to foreign exchange market regulations, satisfying the central bank’s requirements for compliance.

The suspension announcement serves as a stern warning to other players in the foreign exchange market. The Bank of Ghana emphasizes the importance of strict compliance with all applicable forex market regulations and guidelines, signaling its readiness to enforce regulatory measures to safeguard market integrity.

This development indicates the Bank of Ghana’s proactive stance in monitoring the banking sector and enforcing compliance to foster a transparent and stable financial environment.

Stakeholders in the financial and foreign exchange markets will closely monitor the situation, as the actions of GTB and FBN Bank in the coming weeks will be crucial in determining their reintegration into the forex trading landscape.