The Bank of Ghana has moved to strengthen oversight in the foreign exchange market by making the renewal and continued validity of Foreign Exchange Trading Licenses for Licensed Dealer Banks strictly dependent on sustained compliance with regulatory requirements and robust internal control systems.
The latest directive signals a firmer supervisory stance as the Central Bank seeks to safeguard the integrity, credibility and stability of Ghana’s financial system.
In a formal notice to banks on Tuesday, 13th January, 2026, the Central Bank emphasized that foreign exchange licenses will no longer be treated as routine renewals. Instead, banks must demonstrate consistent adherence to prudential regulations, foreign exchange laws and internal operational standards.
According to the Bank of Ghana, failure to comply with these directives will constitute a breach of applicable regulations and may attract sanctions under existing financial laws.
Verification Protocols Under the Spotlight
At the core of the new enforcement approach is the requirement for banks to implement robust verification protocols for all foreign currency transfer instructions. The Central Bank has directed Licensed Dealer Banks to ensure that foreign currency transactions are subjected to multi tier authorization structures and comprehensive customer identification and validation procedures.
These measures are intended to reduce operational risks and limit exposure to fraud and financial crime. The Bank of Ghana noted that weak verification systems increase vulnerability across the banking system, especially in an environment where foreign exchange transactions are increasingly complex and cross border in nature.
By strengthening verification and authorization processes, the Central Bank expects banks to enhance transparency and accountability in the handling of inward and outward foreign currency transfers.
Another critical area highlighted in the directive is the need for a clear and effective segregation of duties among officers involved in foreign currency transactions. Banks are required to separate responsibilities for the initiation, processing, approval and execution of forex transfers.
The Bank of Ghana explained that overlapping roles and weak internal checks create opportunities for abuse and heighten operational and reputational risks. Proper segregation of duties, according to the Central Bank, is a fundamental internal control that helps prevent errors, detect irregularities early and protect institutions from financial losses.
AML and CFT Compliance Takes Centre Stage
The directive also reinforces the obligation of Licensed Dealer Banks to subject all foreign currency transactions to appropriate Anti Money Laundering and Combating the Financing of Terrorism checks. Banks are required to promptly report all suspicious activities in line with existing regulatory frameworks.
The Bank of Ghana stressed that effective AML and CFT controls are essential to maintaining confidence in the foreign exchange market and preventing the misuse of the financial system for illicit activities. Weak enforcement of these controls, the Central Bank warned, undermines Ghana’s efforts to align with international best practices and exposes the banking sector to significant risks.
Internal Audits and Staff Training Mandatory
Beyond transaction level controls, the Central Bank has directed banks to conduct periodic internal audits to assess compliance with foreign currency transfer procedures. These audits are expected to identify gaps, test the effectiveness of internal controls and ensure corrective actions are taken promptly.
In addition, banks are required to invest in regular training and capacity building programmes for frontline, operations and back office staff. The Bank of Ghana noted that continuous training is critical to ensuring that staff remain fully conversant with regulatory requirements and internal operational procedures governing foreign currency transactions.
According to the Central Bank, human capacity gaps and poor understanding of regulatory obligations have contributed to weaknesses observed in some institutions.
The Bank of Ghana disclosed that recent supervisory examinations and market surveillance activities have uncovered material weaknesses, lapses and inconsistencies in the internal control procedures of some Licensed Dealer Banks. These weaknesses were identified in the initiation, processing and reporting of foreign currency transfers.
The Central Bank warned that such deficiencies heighten operational and reputational risks, increase vulnerability to fraud and financial crime, and undermine the orderly functioning of Ghana’s foreign exchange market. These findings, the Bank said, necessitated a stronger enforcement posture to restore discipline and confidence in the system.
Sanctions Loom for Non Compliant Banks
In its statement, the Bank of Ghana made it clear that non compliance with the directives will attract sanctions in accordance with the Banks and Specialized Deposit Taking Institutions Act, 2016 Act 930 and the Foreign Exchange Act, 2006 Act 723. While specific penalties were not detailed, the Central Bank’s warning underscores the seriousness of the new measures.
The regulator expects full cooperation from all Licensed Dealer Banks and has urged institutions to strengthen and strictly adhere to their internal control frameworks. The Central Bank believes that strict compliance is essential to preserving the credibility and stability of the financial system.
Ultimately, the Bank of Ghana’s directive reflects a broader effort to protect the integrity of Ghana’s foreign exchange market at a time of heightened economic sensitivity. By linking forex license validity to strong internal controls, the Central Bank is reinforcing accountability and sending a clear message that regulatory compliance is non negotiable.
As banks adjust to the heightened oversight, the effectiveness of these measures will depend on consistent enforcement and the willingness of institutions to embed compliance at the core of their operations. For the Bank of Ghana, the objective remains clear: a resilient, transparent and well regulated foreign exchange market that supports economic stability.
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