BoG suspends Forex Trading Licences of GT Bank and FBN Bank

Bank of Ghana (BoG) has suspended the Foreign Exchange Trading Licences of Guaranty Trust Bank Ghana Limited (GTB) and FBN Bank Ghana Limited (FBN) for a period of one month, starting from March 18, 2024. This decision was arrived at in accordance with section 11(2) of the Foreign Exchange Act 2006, (Act 723).

The BoG released a statement explaining that the suspension was a result of multiple violations of the foreign exchange market regulations committed by the two banks. These violations include engaging in fraudulent documentation practices in their foreign exchange operations.

During the one-month suspension period, GT Bank and FBN Bank will be required to address and rectify the breaches identified by the BoG. Additionally, the central bank will closely monitor the implementation of effective controls by the banks to ensure strict adherence to the foreign exchange market regulations. Upon satisfactory compliance, the licences of both banks will be restored.

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The Bank of Ghana also took the opportunity to issue a stern warning to all participants in the foreign exchange market, emphasizing the importance of strictly adhering to the applicable forex market regulations and guidelines. It is crucial for market players to uphold integrity and compliance to maintain a healthy and transparent foreign exchange market.

BoG highlighted its regulatory authority’s commitment to maintaining a fair and well-regulated foreign exchange market in Ghana.

BoG has also advised GT Bank, FBN Bank, and other financial institutions to take this suspension seriously, address the identified issues promptly, and implement robust measures to ensure compliance with the regulations.

SOURCE: Coverghana.com.gh