BoG Suspends Foreign Exchange Trading Licenses

The Bank of Ghana (BoG) has taken action by suspending the Foreign Exchange Trading Licenses of Guaranty Trust Bank Ghana Limited (GTB) and FBN Bank Ghana Limited (FBN) effective March 18, 2024. This suspension, lasting for one month, is in line with section 11 (2) of the Foreign Exchange Act 2006, (Act 723).

The Central Bank has also emphasized the importance of maintaining the integrity of the foreign exchange market and ensuring that all transactions are conducted in a transparent and compliant manner. The BoG Suspends Foreign Licenses which are GTB and FBN serves as a warning to other financial institutions operating in the foreign exchange market to adhere to the regulations set forth by the Bank of Ghana.

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In addition to the suspension of their licenses, GTB and FBN may also face further penalties and sanctions if they fail to rectify the violations identified by the Central Bank. The Bank of Ghana is committed to maintaining a stable and well-regulated foreign exchange market in order to safeguard the interests of investors and promote economic stability in the country.

BoG has indicated that the licenses will be reinstated after the one-month period, provided that the banks have implemented effective controls to ensure strict compliance with the foreign exchange market regulations. Furthermore, the Bank of Ghana has advised all foreign exchange market participants to strictly adhere to the relevant forex market regulations and guidelines.

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Overall, the actions taken by the Bank of Ghana against GTB and FBN demonstrate the Central Bank’s commitment to enforcing compliance with foreign exchange regulations and ensuring the integrity of the financial system in Ghana.

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It is expected that the affected banks will take the necessary steps to address the issues raised by the Central Bank and work towards regaining their licenses in the future.

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