Business
Bank Of Ghana suspends FX licences of GTB, First Bank
The Bank of Ghana has suspended the foreign exchange trading licences of two Nigerian-owned banks operating in the neighbouring West African nation — Guaranty Trust Bank and First Bank — over “fraudulent documentation” in their forex operations.
In a statement on Monday, the Ghanaian regulator said the suspension will become effective from March 18, 2024, for a period of one month.
“Bank of Ghana has suspended the Foreign Exchange Trading Licences of Guaranty Trust Bank Ghana Limited (GTB) and FBNBank Ghana Limited (FBN), effective 18th March 2024, for a period of one (1) month, in accordance with section 11 (2) of the Foreign Exchange Act 2006, (Act 723),” the statement partly read.
“This is as a result of various breaches of the foreign exchange market regulations, including fraudulent documentation in their foreign exchange operations which have come to the attention of Bank of Ghana.
“The licence will be restored at the end of the one-month suspension period once the Bank of Ghana is satisfied that they have put in place effective controls to ensure strict adherence to the foreign exchange market regulations.”
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The regulator cautioned foreign exchange market players to adhere strictly to the applicable forex market regulations and guidelines.
The suspension serves as a direct consequence of the banks’ failure to comply with established regulations, highlighting the central bank’s zero-tolerance policy towards regulatory non-compliance.
The suspension announcement serves as a stern warning to other players in the foreign exchange market. The Bank of Ghana emphasizes the importance of strict compliance with all applicable forex market regulations and guidelines, signaling its readiness to enforce regulatory measures to safeguard market integrity.
This development indicates the Bank of Ghana’s proactive stance in monitoring the banking sector and enforcing compliance to foster a transparent and stable financial environment.
Stakeholders in the financial and foreign exchange markets will closely monitor the situation, as the actions of GTB and FBN Bank in the coming weeks will be crucial in determining their reintegration into the forex trading landscape.a
Last Friday, the Central Bank of Nigeria (CBN) revoked the licenses of 4,173 Bureaux De Change Operators, accusing the affected institutions of failing to observe regulatory provisions.
The move is expected to curb arbitrage, racketeering and profiteering as the naira suffers an all-time low against the dollar, from about $/700 last May to over $/1500 at the moment.