Seven Illegal Banks Closed

SECURITY agencies, in collaboration with the Bank of Ghana (BoG), have closed down seven non-bank financial institutions for operating without authorisation from the bank.

They are suspected to have been involved in illegal transactions such as inward and outward transfer of foreign exchange as well as receiving deposits.

The owners of the companies in Kumasi, Accra and Takoradi have been arrested. They are Kumasi Market Company Limited, Kejetia Communication Centre at Asafo, Remabo Enterprise at Adum, Home Serve Communication Centre at Mmrom, The others are Home Save and First Class Ventures in Takoradi and Trust Way Services at Bubuashie in Accra.

The Commander of the Rapid Response Unit (RRU) of the Criminal Investigations Department (CID) Headquarters of the Ghana Police Service, Chief Superintendent K. K. Amoah, who disclosed this in an interview, said the police received a report that some companies were operating as financial houses without authorisation.

He said police personnel were dispatched to the various locations and the owners of the companies were arrested. Mr Amoah gave the names of those who have been arrested as Kwabena Okyere, Baffour Ewuah, Rosemary Owusu Bempah, Nana Osei Kwame, Christopher Kwesi Ardey, Atta Dankyira and Henry Owusu Boakye.

He said they have been granted police enquiry bail. According to a source at the BoG, Section 1 of PNDC Law 328 of 1993 (Non-Banking Law) stipulates that nobody shall carry on any of the activities of non-banking financial institutions except with the permission of the BoG.

The source said information reaching the BoG indicates that several companies especially communication centres and forex bureaux in the country have been receiving remittances from abroad.

Mr Amoah warned those dealing in any illegal money transfer operations to desist from the act since the exercise of the security agencies will be pursued vigorously till all those involved have been apprehended.

In August 1997, a similar action was taken by the BoG when the premises of seven non-banking financial institutions in the Accra metropolis were barred by personnel’s from the BoG and the police for violating the non-banking financial institutions law.

Within a month, operators of more than 50 companies suspected by the bank to be involved in illegal transactions were arrested and investigations into the operations of the companies revealed that most of them were engaged in illegal money transfer business.