The Bank of Ghana (BoG) has announced that it will conduct an audit of remittance transactions covering the period from October 1 to December 31, 2024.
The central bank disclosed this in a public notice signed by Ms. Sandra Thompson, the Secretary of the Bank of Ghana. The audit aims to assess the efficiency and compliance of the remittance process while identifying areas for improvement in the regulatory framework governing cross-border money transfers.
This move underscores the BoG’s commitment to strengthening Ghana’s financial system by ensuring that all remittance transactions align with the country’s regulatory requirements. The central bank stressed that the audit is necessary to promote transparency, mitigate financial risks, and deepen the country’s foreign exchange market.
The audit will evaluate whether financial institutions and remittance service providers comply with key regulations, including the Foreign Exchange Act 2006 (Act 723), the Updated Guidelines for Remittances, the Payment Services Act 2019 (Act 987), and the Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) framework.
These laws and guidelines are designed to ensure that remittance inflows are properly managed, preventing financial crimes such as money laundering and the financing of illicit activities. The BoG has emphasized that all market participants, including banks, non-bank financial institutions, and money transfer operators, must fully comply with these legal provisions.
In its notice, the BoG highlighted the significance of the audit, stating “The objective of this audit is to assess the remittance process and to provide recommendations to strengthen the existing regulatory framework.”
This indicates that beyond ensuring compliance, the audit will help shape future policies aimed at making Ghana’s remittance ecosystem more secure and efficient.
Enhancing Transparency and Reducing Financial Risks
The BoG’s focus on remittance transactions is part of its broader strategy to enhance the country’s financial stability. With remittances playing a crucial role in Ghana’s economy—contributing significantly to foreign exchange reserves and household incomes—it is essential to ensure that such transactions are conducted transparently and in line with global best practices.
By enforcing compliance with anti-money laundering and counter-terrorism financing measures, the audit will help prevent illicit financial flows through the remittance system. Ensuring proper documentation and tracking of remittance transactions will further strengthen the integrity of Ghana’s financial market and boost investor confidence.
The BoG noted that effective adherence to the updated remittance guidelines would mitigate financial risks and enhance the overall efficiency of the country’s foreign exchange market. By ensuring that funds flow through legitimate and well-regulated channels, the central bank aims to improve the stability of the cedi against major foreign currencies.
As part of the audit process, the BoG has called on all financial institutions involved in remittance transactions to cooperate fully. The central bank expects market participants to provide relevant transaction records, adhere to reporting standards, and ensure compliance with existing regulations.
The notice emphasized the importance of cooperation, saying “The central bank encourages market participants to cooperate fully with the audit process.”
Non-compliance with regulatory requirements could lead to penalties or sanctions for financial institutions that fail to meet the prescribed standards. The BoG has in the past taken strict action against institutions that violated foreign exchange and remittance regulations, reinforcing its zero-tolerance approach to financial misconduct.
Moving forward, the findings from the audit will likely shape future policy directions for the remittance industry. If significant compliance gaps are identified, the BoG may introduce additional regulatory measures to tighten oversight and enhance governance within the sector.
The Bank of Ghana’s decision to audit remittance transactions for Q4 2024 highlights its dedication to ensuring financial integrity and regulatory compliance. By assessing adherence to key regulations and identifying areas for improvement, the central bank aims to enhance transparency, mitigate financial risks, and promote the long-term stability of Ghana’s foreign exchange market.
As the audit progresses, all market participants are urged to fully cooperate with the process, as their compliance will contribute to the development of a more secure and efficient remittance ecosystem in Ghana.
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