First National Bank Ghana has issued a statement temporarily halting the processing of new or pending foreign exchange transactions for a duration of 30 days.
First National Bank Ghana emphasized its unwavering commitment to upholding the highest operational and regulatory standards across all facets of its business.
The bank, meanwhile, expressed its dedication to pursuing a mutually agreeable resolution with the Bank of Ghana, with the aim of restoring its Foreign Exchange license promptly.
This decision comes in response to the recent suspension of the bank’s forex licenses by the regulatory authority, the Bank of Ghana. The suspension period, spanning from June 29, 2023, to July 28, 2023, has compelled the bank to seek alternative arrangements with partner banks to ensure minimal disruption in the handling of foreign exchange deals.
“As a bank, we hold ourselves to the highest operational and regulatory standards in every aspect of our business. We are committed to reaching an amicable resolution with the Bank of Ghana for the restoration of our Foreign Exchange license.”
First National Bank Ghana
The move taken by First National Bank Ghana to temporary suspend its foreign exchange transactions serves as a stark reminder of the regulatory landscape’s watchful eye and the growing emphasis on adherence to market conduct rules.
It Is therefore, imperative on the players in the banking sector to be mindful of the regulations played by the Bank of Ghana, knowing that it can bite anytime when found guilty of breaching it. Also, mrrket players must heed the warnings and tighten compliance measures to ensure the integrity and stability of Ghana’s forex market.
The statement from First National Bank Ghana is in response to an earlier suspension served on Fidelity Bank Ghana Limited and First National Bank Ghana Limited. Not only that but they above mentioned banks were also fined by the central bank.
The Bank of Ghana levied fines on Fidelity Bank Ghana Limited and First National Bank Ghana Limited, totaling 1000 penalty points each. The penalties were imposed due to breaches of sections 3.4, 3.5, and 3.9 of the Ghana Interbank Forex Market Conduct rules.
BoG Calls On Participants in the Forex Market to Adhere to Applicable Regulation
In a cautionary statement, the Bank of Ghana called upon all participants in the forex market, including banks, forex bureaus, forex brokers, and money transfer operators (MTOs), to strictly adhere to the applicable regulations and guidelines governing their operations.
According to the BoG, all LFXDs are required to make market by showing a binding two-way quote for all currencies traded in the interbank market if requested by another LFXD. If the amount is not specified, the LFXD shall use the minimum traded lot of 250,000 US dollars or as agreed from time to time by the industry in consultation with the Bank of Ghana.
The LFXD is obliged to trade for that amount at the specified quoted price. A LFXD with a different amount in mind shall specify it, but need not state whether the intention is to buy or sell. A LFXD is not obliged to present a quote for any other amount other than the minimum traded lots agreed by the industry.
First National Bank Ghana Limited, commonly referred to as First National Bank Ghana, is a commercial bank in Ghana. It is licensed by the Bank of Ghana, the central bank and national banking regulator.
First National Bank Ghana provides retail, commercial, corporate, and investment banking services. It utilises technology to provide innovative banking services and solutions to individuals and corporate entities across all economic sectors.
First National Bank Ghana is a subsidiary of the FirstRand Group South Africa. It opened its doors for business on 14 October 2015. Customers can access all banking services from their 11 branches and the world-class digital platforms, which provide 24/7 access to convenient banking services.
