Editorial
“BoG on money laundering”
The banking and financial system plays a key role in the mobilization and deployment of resources for the development of the economy. It is partly because of this that in the last decade or so attention has focused on building inclusive financial systems that ensure increasing access to financial services.
With growing financial intermediation and access, there has also been an escalation in the abuse of the financial system by criminal elements. This has led to increased attempts by Governments, Monetary Authorities and International Agencies to combat money laundering and terrorist financing (AML/CFT).
It is therefore in the right direction that the Bank of Ghana (BoG), last week, launched the Anti-Money Laundering and the Combating of the Financing of Terrorism guidelines (AML/CFT) for the banking industry.
Not too long ago, similar guidelines for the capital market operators was also made public by the Securities and Exchange Commission. It is expected that the regulators of the insurance sector will also follow suit with theirs to complete the cycle of providing a rigorous framework for minimizing, if not eliminating altogether, the misuse of the financial system for illegal activities.
We are aware that a number of initiatives are being taken to insulate the banking and financial systems from the menace of money laundering. Since the passage of the Anti-Money Laundering Act in 2008, a number of initiatives have been pursued to meet international standards with respect to AML/CFT.
In spite of these initiatives Ghana still lags behind other countries and attracts negative rating from global and regional agencies responsible for setting standards in AML/CFT issues.
The issues to be addressed in order to comply with international standards are many, some of whose resolution lie beyond the regulatory authorities. We therefore wish to call on all the stakeholders involved in this fight to collaborate to remove the remaining obstacles that limit the fight against financial crimes and the abuse of our banking system. Particularly important is banks’ compliance with customer due diligence requirements consistent with recommendation of the Financial Action Task Force (FATF).
The guidelines jointly prepared by the BoG and the Financial Intelligence Centre aims at achieving three key objectives: providing clear guidance to Bank and non-Bank Financial Institutions to the laws relating to combating money laundering and terrorism financing; complying with international norms such as FATF’s 40 + 9 recommendations and the Basel Core Principles with respect to anti-money laundering and terrorism financing; and Providing assurance to the international community about our resolve to fight the menace.
It is our hope that the counterpart regulators and other government agencies involved in the fight against money laundering and terrorist financing will play their roles to ensure that Ghana not only meets international standards but also rids its banking and financial system of negative practices, such as the collusion of staff in perpetrating fraud and the failure of banks to comply with law, regulation and advice. For the banking system, this should be a commitment to a new beginning.
“BoG on money laundering”
The banking and financial system plays a key role in the mobilization and deployment of resources for the development of the economy. It is partly because of this that in the last decade or so attention has focused on building inclusive financial systems that ensure increasing access to financial services.
With growing financial intermediation and access, there has also been an escalation in the abuse of the financial system by criminal elements. This has led to increased attempts by Governments, Monetary Authorities and International Agencies to combat money laundering and terrorist financing (AML/CFT).
It is therefore in the right direction that the Bank of Ghana (BoG), last week, launched the Anti-Money Laundering and the Combating of the Financing of Terrorism guidelines (AML/CFT) for the banking industry.
Not too long ago, similar guidelines for the capital market operators was also made public by the Securities and Exchange Commission. It is expected that the regulators of the insurance sector will also follow suit with theirs to complete the cycle of providing a rigorous framework for minimizing, if not eliminating altogether, the misuse of the financial system for illegal activities.
We are aware that a number of initiatives are being taken to insulate the banking and financial systems from the menace of money laundering. Since the passage of the Anti-Money Laundering Act in 2008, a number of initiatives have been pursued to meet international standards with respect to AML/CFT.
In spite of these initiatives Ghana still lags behind other countries and attracts negative rating from global and regional agencies responsible for setting standards in AML/CFT issues.
The issues to be addressed in order to comply with international standards are many, some of whose resolution lie beyond the regulatory authorities. We therefore wish to call on all the stakeholders involved in this fight to collaborate to remove the remaining obstacles that limit the fight against financial crimes and the abuse of our banking system. Particularly important is banks’ compliance with customer due diligence requirements consistent with recommendation of the Financial Action Task Force (FATF).
The guidelines jointly prepared by the BoG and the Financial Intelligence Centre aims at achieving three key objectives: providing clear guidance to Bank and non-Bank Financial Institutions to the laws relating to combating money laundering and terrorism financing; complying with international norms such as FATF’s 40 + 9 recommendations and the Basel Core Principles with respect to anti-money laundering and terrorism financing; and Providing assurance to the international community about our resolve to fight the menace.
It is our hope that the counterpart regulators and other government agencies involved in the fight against money laundering and terrorist financing will play their roles to ensure that Ghana not only meets international standards but also rids its banking and financial system of negative practices, such as the collusion of staff in perpetrating fraud and the failure of banks to comply with law, regulation and advice. For the banking system, this should be a commitment to a new beginning.
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