BoG: FX Licences Of GTBank, FirstBank Suspended Over Malpractices

BoG: FX Licences Of GTBank, FirstBank Suspended Over Malpractices
BoG: FX Licences Of GTBank, FirstBank Suspended Over Malpractices

The Bank of Ghana (BoG) has imposed a one month suspension of the Foreign Exchange Trading Licences First Bank of Nigeria (FBN Bank) Ghana Ltd. and Guaranty Trust Bank (GTB) Ghana Ltd, effective from 18th March 2024, for one month.

This decisive action comes in response to various breaches of foreign exchange market regulations, including incidents of fraudulent documentation within their foreign exchange operations.

According to the central bank, this measure is in strict accordance with section 11 (2) of the Foreign Exchange Act 2006, (Act 723), underscoring the Bank of Ghana’s commitment to maintaining the integrity and stability of the foreign exchange market.

The suspension serves as a direct consequence of the banks’ failure to comply with established regulations, highlighting the central bank’s zero-tolerance policy towards regulatory non-compliance.

Bank of Ghana suspends GTB, First Bank’s forex licences

The Bank of Ghana has outlined that the suspended licenses could be reinstated after the suspension period, contingent on GTBank and FBNBank implementation of effective controls. These controls must ensure rigorous adherence to foreign exchange market regulations, satisfying the central bank’s requirements for compliance.

The suspension announcement serves as a stern warning to other players in the foreign exchange market. The Bank of Ghana emphasizes the importance of strict compliance with all applicable forex market regulations and

guidelines, signaling its readiness to enforce regulatory measures to safeguard market integrity.

This development indicates the Bank of Ghana’s proactive stance in monitoring the banking sector and enforcing compliance to foster a transparent and stable financial environment.

Stakeholders in the financial and foreign exchange markets will closely monitor the situation, as the actions of GTB and FBN Bank in the coming weeks will be crucial in determining their reintegration into the forex trading landscape.