New banking regulations to promote sector-BoG

A deputy Governor of the Bank of Ghana, Johnson Asiama, has urged financial institutions to see regulatory requirements key improving the banking sector.

According to him, these requirements and guidelines must be embraced to ensure that “we all operate and promote a safe and sound banking sector.”

Dr. Asiama, was speaking at the recent Risk Summit Africa 2017 held in Accra.

He called on players in the financial sector to develop proactive risk management practices that would help them compete in the global economy.

He reiterated that strengthening financial service operations with risk management in the financial sector is a shared responsibility.

“We, as regulators, will pursue our regulatory and supervisory functions by encouraging banks and other financial institutions to adopt and implement the Basel II and III, which seek to minimize systemic risk in the financial sector,” he said.

Anti-Money Laundering Act

Dr. Asiama hinted that the Central Bank would soon publish its sanctions for non-compliance with provisions of the Anti-Money Laundering Act, 2014 (Act 874)

The new anti-money laundering Act was passed in 2014 to remedy some deficiencies identified in the Anti-Money Laundering Act, 2008 (Act 749).

The new Act extends the application of Act 749, and expands the scope of actions that can be taken under the Act and provides for related matters.

The Anti-Money Laundering Act, 2014 (Act 874) include the proliferation of weapons of mass destruction in its definition of unlawful activities and the new predicate offence – tax offence.

It expanded the Customer Due Diligence framework, which is the bedrock of sound anti-money laundering regime.

The Act also gives the mandate to supervisory authorities to apply administrative sanctions.

The Central Bank has promised to publish its sanctions for non-compliance.