Bank of Ghana Suspends Two Nigerian Banks over FX Issues

The Bank of Ghana recently announced suspending the FX Trading Licences of Guaranty Trust Bank Ghana Limited and FBNBank Ghana Limited. This suspension is expected to start on March 18, 2024, and last for one (1) month, after which it will be probed to see if it can begin operating.

The apex bank of Ghana, known as the Bank of Ghana, announced this in its official website, clarifying why it was taking such a step to suspend the two Nigerian banks. The two Nigerian banks were said to have multiple violations of foreign exchange market regulations, which involved fraudulent documentation in FX exchange activities.

However, the Bank of Ghana stated that upon completing the one-month suspension, the Bank's license will be restored. The Bank of Ghana indicated that it has implemented various measures to clamp down on banks that go against its foreign exchange market regulations.

Also, Ghana's apex bank emphasised the importance of foreign exchange market participants rigorously adhering to the relevant forex market regulations and guidelines.

Also, both banks have stated that they are working with the relevant government agencies and customers to resolve these trade-related issues promptly.

The statement by the Bank of Ghana reads,

• The Bank of Ghana has suspended the Foreign Exchange Trading Licences of Guaranty Trust Bank Ghana Limited (GTB) and FBNBank Ghana Limited (FBN) for one (1) month, effective March 18, 2024, by Section 11(2) of the Foreign Exchange Act 2006, (Act 723).

• This is due to various breaches of the foreign exchange market regulations, including fraudulent documentation in their foreign exchange operations, which have come to the attention of the Bank of Ghana.

• The licence will be restored at the end of the one-month suspension period once the Bank of Ghana has implemented adequate controls to ensure strict adherence to the foreign exchange market regulations. In this statement, we caution foreign exchange market players to adhere strictly to the applicable forex market regulations and guidelines.

Section 11(2) of the Foreign Exchange Act 2006 (Act 723 states: “The Bank may suspend a licence for a specific period or determine conditions or restrictions for the licence instead of revoking the licence.”

FBNBank Ghana responded in a statement and noted that they were working with the Bank of Ghana to identify and address issues that led to the apex bank's suspension of its forex trading licence.

First Bank states,

• We refer to the Bank of Ghana's announcement of the 30-day suspension of our Foreign Exchange Trading Licence effective March 18, 2024.

• We advise our valued customers and esteemed stakeholders that we are working with the Bank of Ghana to remediate the identified trade-related matters.

• FBNBank would like to assure its valued customers that when the suspension kicks in, the Bank's other business segments and solutions will be fully operational. This will include branch operations, agent banking partners, and channels for seamless banking.

• We reaffirm our commitment to our customers and stakeholders to provide the full range of excellent banking services, with the assurance that we will continue to uphold the high ethical standards we are known for.

Guaranty Trust Bank accepted the Central Bank of Ghana's suspension of the Foreign Exchange Trading Licence until April 18, 2024. The Bank assured customers and stakeholders of efforts to address trade-related issues promptly. It emphasised that customer deposits and other business segments remain unaffected, with all services available through regular channels and online platforms.

The Bank stated its commitment to comply with regulatory compliance, Anti-Money Laundering policies, and ongoing discussions with the Central Bank of Ghana to resolve matters promptly.

It stated, 

• We refer to the Central Bank of Ghana's press statement in which it announced the suspension of Guaranty Trust Bank Ghana's Foreign Exchange Trading License effective from March 18 2024, until April 18 2024 (one month) and received official notice.

• We assure all our esteemed customers and stakeholders that we are working with the relevant Government Agencies and customers to resolve these trade-related issues promptly.

• Our customers and stakeholders are our primary responsibility. Guaranty Trust Bank Ghana would like to clarify that this development does not affect customers' deposits and other business segments of our operations. All other products and services: Main branches and agency Banking outlets are available for your convenience during our regular opening hours, and our Mobile Apps and Internet banking are available for your use at any time of the day.

• We further assure our customers that the issue was not a function of willful non-compliance by the Bank. The bank has a culture that endeavours to comply with regulations at all times and stringent Anti-Money Laundering CFT policies applied across all our operations.

• We are also in ongoing consultations and discussions with the Central Bank of Ghana to resolve all matters raised fully in the shortest possible time. Guaranty Trust Bank Ghana remains committed to being a constructive participant in Ghana's financial markets and contributing to its further developments in the interest of all its customers and stakeholders.