The Bank of Ghana (BoG) has continued its financial literacy education, once again, warning the public against dealing with unlawful persons or businesses engaging in the business of buying and selling of foreign currency without a license from the Central Bank.
The current literacy education duels solely on “Black Market” foreign exchange operators. The Bank of Ghana explained that a “Black Market” foreign exchange operator is a foreign exchange dealer who does not have a valid Bank of Ghana’s license for that purpose.
“If you do business with a ‘black market’ foreign exchange operator, you are likely to trade in fake currency, to be drawn into money laundering, terrorist financing or to be attacked by unscrupulous persons, including armed robbers. Avoid them!
“Any person with foreign currency (resident or non-resident) who wishes to transact any business in Ghana should exchange their foreign currency for Ghana Cedis at any licensed foreign exchange bureau or universal bank”.
Bank of Ghana
Often, the public are lured to into believing that apart from the universal banks and foreign exchange bureaux, there are other institutions licensed to trade in foreign currency in Ghana.
However, the Central Bank clarified in the latest communique that universal banks and foreign exchange bureaux are the only institutions licensed to trade in foreign currencies in Ghana.
The regulator therefore, advised the general public to request for operators’ license from BOG for foreign exchange business before engaging in any form of transactions with such dealers.
According to the Bank of Ghana, the proof of customer identification is a requirement which helps to reduce fraud, money laundering and terrorist financing risks among others. As such, BoG urged the public to always provide their personal ID cards when transacting business with a bank or foreign exchange bureau.
“You will be required to provide Identification Documents (ID) before conducting any transaction with a foreign exchange bureau. These include passport, driver’s license, voter’s ID or the National ID card.
“If your Foreign Exchange Bureau does not require an ID from you, or does not retain a copy of your ID, report them to the Bank of Ghana. Note: The ECOWAS ID card (Ghana Card) will be the sole ID for financial transactions from 1st July 2022”.
Bank of Ghana
Safety of personal information
Recently, the safety of personal information remains a concern for most customers due to rising incidence of fraud and cybercrimes. Customers may therefore, be reluctant to give out personal information to foreign exchange bureau as they don’t know how protected that information may be.
The Bank of Ghana, allaying such fears, stated that “Your personal information provided to the forex bureaux are fully protected under the Data Protection Act. Report any mishandling of your personal information to the Bank of Ghana”.
BoG further warned that it is “unlawful for you to deposit Ghana Cedis with a foreign exchange bureau at an agreed rate and collect the foreign currency equivalent at a later date”.
After transacting business with a licensed foreign exchange bureau, BoG urged the public to “insist on your receipt, which bears the bureau’s name, amount purchased and traded rate. Be sure to keep your receipt for inspection by BOG or law enforcement if needed”.
As to whether online forex trading is legal or regulated in Ghana, BoG stated that “No! Section 3(1) of the Foreign Exchange Act, 2006 (Act 723) prohibits persons from trading in forex (online or otherwise) without a licence from Bank of Ghana”.
Punishment for “Black Market” forex dealers
Engaging in the business of buying and selling foreign currency without a licence from Bank of Ghana is punishable upon summary conviction, by a fine of up to 700 penalty units or a prison term of not more than eighteen months or both.
Bank of Ghana also indicated that it is unlawful to price, advertise or demand payment for goods and services in foreign currency in Ghana. It urged the public to always remember that the sole legal tender in Ghana is the Ghana Cedi and the Ghana pesewas.
According to BoG, the maximum value per transaction that may be carried out at a foreign exchange bureau is US$ 10,000.00. It is unlawful to buy or sell foreign currency to or from an unlicensed person or entity otherwise known as the “Black Market”, BoG emphasized.
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