Bank Of Ghana Gets Tough With Illegal Non-Bank Institutions

Accra, (Greater Accra) 18 - Sept .The Bank of Ghana today closed down six non- bank financial institutions, including forex bureaux, as it continued its clamp down on illegal financial institutions. They are First African Financial Services, Telecash Forex Financial Services, Big Value, Gold Coast Travel and Forex Bureau, KASS Forex Bureau and Unity International Forex. The Central Bank said the institutions were operating in breach of the relevant laws, rules and regulations governing their operations. The Bank started the exercise on September 16 in Kumasi and so far, 53 forex bureaux and two financial service institutions have been closed down. The financial service institutions, according to the BOG, were transferring money outside the country even though they had not been licensed to do so. Forex bureaux had arrogated to themselves operations other than what they had been licensed to undertake. During the operation, the Non-Bank Financial Institutions (NBFI), said they were outraged by the Central Bank's order to close down. The NBFI claimed that even though there had been some informal discussions between them and the Central Bank, there was no talk of closing them down. They described the Bank's action as ''unfair''' since it puts their credibility at stake and their customers in danger. They said they were being victimised. An official of First African Financial Services appealed to BOG to allow it to pay-off outstanding remittances to notified recipients while their investigations continue. "Most of these customers were here this morning from various destinations to collect their remittances...this is to forestall the Pyram scheme incident.'' The BOG said the companies were engaged in inward and outward transfers of foreign exchange, taking deposits, engaging in unauthorised buying of foreign currencies from beneficiaries. It said the central bank had warned the companies and bureaux to desist from violating forex rules and regulations. "However, these warnings have gone unheeded and the bank will continue with such exercises till defaulting finance companies and bureaux have been dealt with". The companies and forex bureaux on their part, claimed the BOG never notified them of ''this exercise'', saying they believe strongly that they are doing genuine business.