BoG suspends CBG’s forex license for one month

The Bank of Ghana has announced the suspension of Consolidated Bank Ghana’s (CBG) foreign exchange trading license, effective November 26, 2024, for a duration of one month.

The suspension was issued under Section 11(2) of the Foreign Exchange Act, 2006 (Act 723), following a series of regulatory breaches by CBG in the foreign exchange market.

In a statement on November 12, the central bank cited violations of several key regulations, including the updated Guidelines for Inward Remittance Services for Payment Providers from November 2023 and the Anti-Money Laundering/Combating the Financing of Terrorism & The Proliferation of Weapons of Mass Destruction (AML/CFT&P) guidelines, which apply to accountable institutions in Ghana and were last updated in December 2022.

These breaches reportedly came to the attention of the Bank of Ghana through regulatory oversight.

According to the Bank of Ghana, the suspension will be lifted at the end of the one-month period provided CBG demonstrates that it has implemented effective measures to comply with foreign exchange market regulations and prevent future infractions.

The Bank of Ghana further issued a warning to all players in the foreign exchange market, urging strict compliance with the applicable regulations and guidelines to maintain market integrity and prevent further enforcement actions.