Anti-Money Laundering (AML) laws play an important role in safeguarding the integrity and stability of financial systems. Foreign Exchange Bureaux (FEBs), in particular, are at risk of being used in money laundering operations as they operate in a high-risk environment where illicit funds can easily be laundered.
To mitigate these risks, the Bank of Ghana (BoG) and the Financial Intelligence Centre (FIC) have (in February 2025) issued AML guidelines (entitled “Anti-Money Laundering / Combating the Financing of Terrorism & the Proliferation of Weapons of Mass Destruction (AML/CFT&P) Guidelines for Foreign Exchange Bureaux September 2024”) (the AML Guidelines) specifically targeted at reducing the risks of FEBs being used to launder the proceeds of crime, and to safeguard against economic and organised crime as well as reputational and financial risks.
The AML Guidelines require FEBs to adopt a risk-based approach in identifying and managing AML risks and to report, to the BoG and the FIC, any proceeds of crime derived from any unlawful activities. Additionally, FEBs are required to comply with all requests for documents and other information regarding AML matters made by the BoG, FIC or other relevant body.
The AML Guidelines complement the existing applicable AML laws including the Anti-Money Laundering Act, 2020 (Act 1044) and the Anti-Money Laundering Regulations, 2011 (L.I. 1987) applicable to FEBs.
Key requirements for FEBs
AML programme and governance framework
An FEB is required to put in place an effective AML programme and governance framework in the following manner:
| Required action | Details of requirement |
| AML policy | Develop and implement policies and procedures to (a) combat money laundering and terrorism financing risks, and (b) prevent the use of their facilities for unlawful activities. |
| AML compliance culture | Develop an AML programme to create a culture of compliance and ensure the diligent implementation of the AML Guidelines. |
| Role of directors and management | Have a minimum of 2 directors who must satisfy the BoG’s fit and proper test.The directors and management must, among others, (a) review and approve an AML policy/manual, programme, training programme and compliance reports, (b) approve the appointment of an AML Reporting Officer (AMLRO) and ensure there is a succession plan for the AMLRO, (c) ensure that the directors/management and employees receive the requisite training on AML annually, and (d) ensure remedial action plans are put in place to address independent audit and regulatory reports. |
| Role of AMLRO | The AMLRO must report directly to the directors and management and is, among others, responsible for (a) reviewing and approving AML policies and procedures, (b) regularly conducting AML risk assessments, (c) AML training programmes, (d) reporting suspicious activities and transactions to the BoG and the FIC, (e) submitting AML compliance reports to the BoG and FIC, and (d) putting remedial action plans in place. |
| Approval for outsourcing | No outsourcing of AML functions without the BoG’s prior written approval. |
| Internal controls | Establish and maintain internal controls to mitigate AML risks. This includes the filing of suspicious transaction reports and cash transaction reports, verifying the identity of customers with the Ghana card, conducting customer due diligence and maintaining records of all transactions for at least 5 years. |
| Testing | Conduct independent audits to assess the adequacy, completeness and effectiveness of an FEB’s AML programme. This may be carried out by either an internal or external auditor. An audit report must be submitted to the BoG and the FIC by 15 January of each year. |
Due diligence, training and record keeping
An FEB must comply with the following customer due diligence (CDD), employee due diligence (EDD), employee training, and recording keeping requirements:
| Required action | Details of requirement |
| CDD | Prominently display a notice for customers to present identification and insist on electronic receipts for transactions. Verify customer identities for all transactions by ensuring customers provide proof of identification and inquire about the purpose of transaction and source of funds. In cases where a customer is acting on behalf of another person, the FEB must implement reasonable measures to identify the actual beneficiary. |
| File failure report | File a report with the FIC within 24 hours of any failure to conduct CDD due to non-cooperation by the customer. |
| Monitor transactions | Have written policies for monitoring, identifying, and reporting suspicious transactions, taking into account the frequency, volume, and size of each transaction. Certain red flags should be noted, including transactions involving shell companies, high-risk countries/customers and the nature, amount and type of the currencies involved. |
| Report thresholds | Report cash transactions exceeding GHS 20,000 (or its foreign equivalent) to the FIC. |
| Prohibitions | Prohibited from tipping off (i.e. disclosing that a report has been filed with the FIC) or transacting with sanctioned customers (as designated). |
| Screen for sanctions | Screen all customers against an international or domestic list, and refrain from conducting business with sanctioned customers. Suspicious transaction reports related to such cases must be filed with the FIC. |
| EDD | Implement robust recruitment policies, conduct EDD, maintain employee records, and establish a code of conduct for its employees. Regular appraisals should be carried out to evaluate employee performance and their adherence to AML obligations. |
| Employee training | Implement mandatory comprehensive employee training programmes on AML and submit same to the BoG and FIC by 31 December of each year. The training programmes must cover relevant AML laws, reporting requirements, identification of red flags and CDD. Also ensure employee participation in all training programmes organised by the BoG and/or FIC. |
| Record keeping | Maintain customer and transaction records for a minimum of 5 years. The records must be maintained in a manner which makes it readily available upon request from the BoG or FIC. Where a third party is providing the system for recording transactions, the FEB must ensure that the third-party service provider maintains the records. |
Sanctions
Non-compliance with the AML Guidelines may result in the imposition of any of the sanctions prescribed under the Anti-Money Laundering Act, 2020 (Act 1044) and the BoG/FIC Administrative Penalties Guidelines 2022 which include the suspension or revocation of licence, and administrative penalties.
Conclusion
The AML Guidelines enhance compliance with existing AML laws to strengthen regulatory compliance and mitigate the risk of financial crime. This is a proactive stance against the risks that can undermine the stability of Ghana’s financial system. These guidelines would help FEBs safeguard their operations and contribute to a safe financial landscape.
Author: Jojo Bentsi-Enchill, Associate at LEX Africa member Bentsi-Enchill, Letsa & Ankomah https://bentsienchill.com/
