The Bank of Ghana is urging all financial institutions to conduct fit and proper tests annually for all board members and managers.
It also wants it to be done before appointment of any director or key management personnel.
It disclosed this in questions and answers session on the new guidelines on the Fit and Proper persons for Accountable Institutions.
On what accountable institutions should do during the assessment, the Central Bank called for the conduct of a comprehensive due diligence.
It also advised the verification of all material information through an independent source.
The documents required for assessment are the application letter, updated CV, the personality note form, tax clearance certificate, certified financial statement of affairs, copies of academic and professional certificates, police report, enhanced due diligence questionnaire, regulatory references (minimum six years), bankruptcy or insolvency certificate (if applicable) and beneficial ownership disclosures (for corporate entities
The responsibilities of the Board are to appoint qualified directors and key management staff, conduct due diligence prior to all appointments, establish a robust Fit and Proper Policy, oversee assessments of outsourcing arrangements and ensure ongoing competence of Board members and key personnel.
On the other hand, the responsibilities of key management are to conduct fit and proper assessments for middle and lower management, submit findings to the Board and ensure annual assessments for heads of control functions (Risk, Compliance, AML/CFT, Internal Audit, etc.).
Should the person found not fit and proper, the Bank of Ghana would reject or revoke an appointment or Issue a prohibition order for up to 10 years of prevent the person from holding shares, directorships, or key function.
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