The Bank of Ghana has declared that Guaranty Trust Bank Ghana Limited (GTB) and FBNBank Ghana Limited (FBN)’s foreign exchange trading licenses will be suspended for one month beginning March 18, 2024.
This decisive move is in reaction to several violations of foreign exchange market regulations, including fake documentation inside their foreign exchange activities.
According to the central bank, this step strictly complies with Section 11 (2) of the Foreign Exchange Act 2006 (Act 723), demonstrating the Bank of Ghana’s commitment to the integrity and stability of the foreign exchange markets.
The suspension directly results from the banks’ failure to comply with existing standards, demonstrating the central bank’s zero-tolerance approach toward regulatory noncompliance.
The Bank of Ghana has announced that the suspended licenses may be reinstated after the suspension period, provided GTB and FBNBank establish adequate controls. These controls must strictly adhere to foreign exchange market regulations and meet the central bank’s compliance standards. The suspension notification is a strong warning to other stakeholders in the foreign exchange market.
The Bank of Ghana underlines the need to strictly adhere to all applicable forex market regulations and guidelines, indicating its willingness to impose regulatory actions to protect market integrity.
This move demonstrates the Bank of Ghana’s proactive approach to monitoring and enforcing compliance in the banking sector to maintain a transparent and stable financial environment. The financial and foreign exchange market stakeholders will closely monitor the situation, as GTB and FBN Bank’s activities in the coming weeks will determine their reintegration into the forex trading scene.
