The Ghanaian Central Bank has suspended the foreign exchange license of Guaranty Trust Bank and FBN Bank for one month.
The Central Bank of Nigeria announced on Tuesday the suspension of several commercial banks from engaging in foreign exchange transactions. This suspension, effective March 18, comes shortly after the apex bank barred eight money transfer organizations from offering remittance services without regulatory approval. The decision aims to regulate the foreign exchange market more effectively. The statement highlighted that the suspended banks had violated foreign exchange market regulations, including the submission of fraudulent documentation in their forex operations.
The suspension aligns with Section 11 (2) of the Foreign Exchange Act 2006, granting the Bank of Ghana authority to suspend licenses instead of revoking them. Guaranty Trust Bank responded through a statement issued on Tuesday, expressing its commitment to collaborating with the Bank of Ghana to promptly address the trade-related issues that led to the suspension.
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The bank further assured customers that all other business operations remain unaffected, emphasizing that the suspension only pertains to its foreign exchange segment. In its statement, the Bank of Ghana outlined that it would reinstate the banks’ licenses after one month if it determines that they have implemented effective controls to ensure strict compliance with regulations.
The apex bank issued a warning to other financial institutions, stressing the importance of strict adherence to forex market regulations and guidelines. Last week, the Central Bank of Nigeria revoked the licenses of over 4,000 Bureau De Change operators, BDCs, for various infractions, including failure to pay required fees, submit returns, or comply with anti-money laundering and terrorism financing regulations.
Additionally, the Nigerian government has been implementing measures to address alleged fraud involving Binance, a global cryptocurrency trading platform, which has impacted the devaluation of the country’s currency, the Naira.
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