BoG Suspends Forex Licences of GT Bank, FBN Bank

 

The Bank of Ghana (BoG) has taken the decision to suspend the forex licences of Guaranty Trust Bank Ghana Limited and FBN Bank Ghana Limited, two Nigerian affiliated banks as announced in an official statement.

The Central Bank has stated that the suspension is a result of various breaches of the foreign exchange market regulations, including instances of fraudulent documentation in their foreign exchange operations, which have been brought to their attention.

According to a statement released by the Bank of Ghana on Monday 4th March, the one-month suspension will be effective from 18 March. The suspension, in accordance with section 11(2) of the Foreign Exchange Act 2006, (Act 723), aims to enforce stricter adherence to the regulations governing the foreign exchange market.

The Bank of Ghana has made it clear that the licences of both Guaranty Trust Bank Ghana Limited (GTB) and FBN Bank Ghana Limited (FBN) will be restored at the end of the one-month suspension period on the condition that they have implemented effective controls to ensure strict compliance with the foreign exchange market regulations.

Foreign exchange market regulations play a critical role in maintaining the stability and integrity of the financial system.

The Bank of Ghana is responsible for overseeing and enforcing compliance with these regulations to protect the interests of the public and the integrity of the financial sector as a whole.

The suspension of these two banks’ forex licences serves as a stern warning to the industry and emphasizes the importance of adhering to the regulations set forth by the Bank of Ghana.
The central bank’s action shows its commitment to maintaining transparency, accountability, and fairness in the forex market.

The affected banks will be closely monitored during the suspension period to ensure that they make the necessary changes to rectify the breaches that led to the suspension.

The restoration of their licences will be contingent on their ability to demonstrate compliance with the foreign exchange market regulations.

The Bank of Ghana remains committed to promoting a conducive environment for transparent and efficient forex operations, and will continue to take appropriate action against any institution found to be in violation of the regulations.

By Vincent Kubi

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