BOG Response To Allegations Of Illegal Money Transfers

Bank Of Ghana’s Response To Allegations Of Illegal Money Transfers Into Ghana

The attention of the Bank of Ghana has been drawn to reports in the media about illegal money transfer activities. The Daily Graphic of August 11, 2011 carries a story to the effect that the Bank of Ghana, the regulatory authority, did not appear to be attaching the requisite relevance and urgency to the growing threat of unregistered foreign exchange transactions to the nation’s balance of payments and finances. Another story in the Daily Guide, also of August 11, 2011 under the caption ‘Money Laundering booms’ reached a similar conclusion with advice to the Bank of Ghana to proactively promote the operations of formal transfer methods and act against illegal methods as well as consider allowing MTOs to transmit money out of Ghana as a solution to the growing menace.

The Bank of Ghana wishes to advise the general public that it takes its oversight responsibility over the banking and financial system seriously. Accordingly, it has in place a regime for regulating money transmission services in Ghana. The system involves the licensing of banks and approval of partnerships between banks and money remittance companies such as Western Union Money Transfer, Vigo, and Moneygram. Apart from the banks the Bank of Ghana has also licensed a number of non-bank financial institutions which are authorized to deal in money remittance business.

The Bank of Ghana receives regular information from the banks and remittance companies on their activities and pays supervisory visits to these institutions periodically. Data from the banks and the money transfer companies indicate a steady growth in inward remittances. Remittances include transfers to NGOs, embassies, service providers and individuals. Between January and May 2011, remittances that came through the banking system reached US$7.1 billion (from US$4.2 million a year before), of which $745 million accrued to individuals.

The Bank of Ghana is aware that some remittances into Ghana may be coming through informal sources such as through personal couriers but it is not aware that the scale is that massive or that such remittances are laundered money, which is the impression the research findings seems to create. The Bank is very much concerned about the impression being created that all private remittances are necessarily illegal or are laundered money and that the Bank of Ghana is helpless or unconcerned about the phenomenon. Accordingly, the Bank will appreciate the Institute sharing any such information in its possession with the Bank and the security agencies to enable us deal appropriately with the matter.

The Bank also advises the general public to share any information they may have on persons and institutions engaged in money transfer services without authorization from the Bank of Ghana. The Bank will publish a list of approved money remittance companies and services on its website and in the print media for the guidance of the general public.