The foreign exchange trading licenses of Guaranty Trust Bank Ghana Limited (GTB) and FBNBank Ghana Limited (FBN) will be suspended for one month from March 18, 2024, according to a statement by the Bank of Ghana.
This prompt action is in reaction to many violations of regulations governing the foreign exchange market, including instances of fake documentation in their foreign exchange operations.
The Bank of Ghana is committed to preserving the integrity and stability of the foreign exchange market, and this move, according to the central bank, is strictly in line with Section 11(2) of the Foreign Exchange Act 2006 (Act 723).
The suspension highlights the central bank’s zero-tolerance approach towards regulatory non-compliance and directly results from the banks’ failure to adhere to existing standards.
The Bank of Ghana has said that provided GTB and FBNBank have implemented efficient procedures. The suspended licences may be reactivated following the suspension period. These controls must guarantee strict respect for laws governing the foreign currency market, meeting the compliance standards set forth by the central bank.
The suspension notification sharply warns other participants in the foreign currency market. The Bank of Ghana signals its readiness to impose regulatory measures to protect market integrity by highlighting the significance of rigorous adherence to all applicable forex market regulations and guidelines.
This development demonstrates how the Bank of Ghana actively monitors the banking industry and enforces compliance to promote a stable and transparent financial system.
GTB and FBNBank’s activities in the upcoming weeks will be critical in deciding whether to readmit them into the forex trading scene; thus, stakeholders in the financial and foreign currency markets will be keenly watching the situation.
