By Fawaz Adebisi
The Bank of Ghana has announced the suspension of the foreign exchange, FX, trading licences of two prominent Nigerian-owned banks operating in Ghana.
Effective by March 18, 2024, Guaranty Trust Bank, GTB, and First Bank of Nigeria, FBN, will face a one-month suspension, as announced by the Ghanaian apex bank on Monday.
As gathered, this move follows heightened concerns over fraudulent documentation practices within the FX operations of the two financial giants.
According to a statement by the apex bank, the decision, made in accordance with section 11 (2) of the Foreign Exchange Act 2006 (Act 723), underscores the seriousness with which the Bank of Ghana addresses breaches in the foreign exchange market.
In its statement, the Bank of Ghana emphasized the need for strict adherence to regulations and highlighted the intention to restore the suspended licences once effective controls are established to ensure compliance with market regulations.
The statement reads, “This is as a result of 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 is satisfied that they have put in place effective controls to ensure strict adherence to regulations to the foreign exchange market.”
The suspension coincides with efforts by the Nigerian government to stabilize the country’s volatile FX market, indicating a broader regional impact of regulatory measures.
Recall that on March 1, 2024, the Central Bank of Nigeria (CBN) revoked the licences of 4,173 bureau de change (BDC) operators for failing to observe regulatory provisions.
The financial regulator therefore urged FX market players to adhere strictly to the applicable regulations and guidelines.
