The Bank of Ghana (BoG) has identified significant internal control weaknesses in the foreign exchange transfer operations of some Ghanaian banks, raising concerns about rising operational, fraud, and reputational risks within the financial system.
The central bank said recent supervisory examinations and market surveillance activities revealed lapses and inconsistencies in the way certain banks initiate, process, approve, and report foreign currency transfers.
According to the BoG, the deficiencies have increased vulnerability to fraud and financial crime, while undermining the integrity, transparency, and orderly functioning of Ghana’s foreign exchange market.
In response, the BoG has warned that the renewal and continued validity of commercial banks’ Foreign Exchange Trading Licences will be strictly tied to demonstrable and sustained compliance with regulatory requirements and sound internal control standards.
To close the identified gaps, the central bank has directed all licensed banks to immediately implement and consistently enforce a seven point corrective action plan.
Key measures include the introduction of robust verification procedures and multi tier authorization for all foreign exchange transfer instructions, alongside strict adherence to Anti Money Laundering and Counter Financing of Terrorism (AML/CFT) requirements.
Banks are also required to ensure clear segregation of duties among staff involved in initiating, processing, and approving forex transactions to minimize fraud risks.
In addition, institutions must deploy active, system based monitoring tools to detect unusual transaction patterns and unauthorized system access.
The BoG further directed banks to conduct daily reconciliation of all forex accounts, with any discrepancies resolved within 24 hours.
Institutions must also carry out periodic internal audits, escalate findings to their Boards and the central bank, and organize regular training programmes for relevant staff on foreign exchange regulations and operational procedures.
The central bank cautioned that failure to comply with the directives constitutes a breach of prudential and foreign exchange regulations, and may attract sanctions under the Banks and Specialised Deposit Taking Institutions Act, 2019 (Act 930), as well as the Foreign Exchange Act, 2006 (Act 723).
The BoG has therefore called on all licensed dealer banks to fully cooperate and strictly comply with the new measures, stressing that this is critical to safeguarding the credibility, integrity, and stability of Ghana’s financial system.
The directive comes amid heightened regulatory scrutiny of Ghana’s foreign exchange sector. Just last week, the BoG and Financial Intelligence Centre (FIC) issued stringent Anti Money Laundering, Combating the Financing of Terrorism and Combating the Proliferation Financing (AML/CFT/CPF) guidelines for Foreign Exchange Bureaux, effective from September 2025.
Those guidelines explicitly mandate the Ghana Card as the primary identification tool for forex transactions and require bureaux to capture Ghana Card details and biometrically verify identities for transactions involving ten thousand dollars or more.
The measures reflect growing concerns about vulnerabilities in Ghana’s foreign exchange ecosystem. Ghana’s forex sector has historically faced challenges with unauthorized dealers, compliance gaps, and insufficient oversight, prompting a series of regulatory reforms in recent years.
In May 2024, the BoG established a dedicated task force to monitor all foreign exchange bureaus and ensure strict compliance with regulatory frameworks. On August 1, 2024, the central bank introduced a centralized foreign exchange trading platform requiring all individuals buying or selling foreign currencies to present a Ghana Card and undergo biometric verification.
The BoG has also tightened rules for International Money Transfer Operators (IMTOs), directing that all remittance settlements be made in Ghana cedis through designated settlement accounts held with universal banks. Foreign currency inflows from remittances must be converted into cedis on the same day, using exchange rate benchmarks prescribed by the central bank.
The Foreign Exchange Act, 2006 (Act 723) requires that each payment in foreign currency to be made to or from Ghana between a resident and a non resident shall be made through a bank. Additionally, each transfer of foreign exchange to or from Ghana shall be made through a person licensed to carry out the business of money transfer or any authorized dealer.
These requirements emphasize the need for only authorized persons to deal with foreign exchange transactions to or from Ghana, attempting to plug leakages and allow the central bank proper oversight of foreign exchanges.
The Banks and Specialised Deposit Taking Institutions Act, 2019 (Act 930) grants the BoG extensive supervisory and enforcement powers, including the authority to impose administrative penalties, suspend licenses, and take corrective action against institutions that fail to maintain adequate internal controls or violate prudential norms.
Ghana operates a managed float exchange rate regime. The cedi appreciated significantly in 2025, emerging as one of the world’s best performing currencies after gaining 42.6 percent in the first half of the year, a sharp reversal from its 19.2 percent depreciation in 2024.
However, the World Bank cautioned in its 9th Ghana Economic Update released in August 2025 that while the BoG’s interventions have contributed to cedi stability, excessive interventions could distort market dynamics and undermine long term economic stability.
The latest directive reinforces the central bank’s commitment to maintaining robust oversight of foreign exchange operations as Ghana works to strengthen financial sector stability following years of economic challenges and a debt restructuring programme.
