The Bank of Ghana has declared that Guaranty Trust Bank Ghana Limited (GTB) and FBNBank Ghana Limited (FBN)’s foreign exchange trading licences will be suspended for one month beginning March 18, 2024.
This decisive move is in reaction to several violations of foreign exchange market regulations, including instances of fake documentation inside their foreign exchange activities.
According to the central bank, this step is strictly in conformity with Section 11 (2) of the Foreign Exchange Act 2006 (Act 723), demonstrating the Bank of Ghana’s commitment to the integrity and stability of the foreign exchange markets.
The suspension is a direct result of the banks’ failure to comply with existing standards, demonstrating the central bank’s zero-tolerance approach towards regulatory noncompliance.
The Bank of Ghana has announced that the suspended licences may be reinstated after the suspension period, provided GTB and FBNBank establish effective controls. These controls must ensure strict adherence to foreign exchange market regulations and meet the central bank’s compliance standards.
The suspension notification is a strong warning to other stakeholders in the foreign exchange market. The Bank of Ghana emphasises the need to strictly adhere to all applicable forex market regulations and guidelines, indicating its willingness to impose regulatory actions to protect market integrity.
This move demonstrates the Bank of Ghana’s proactive approach to banking sector monitoring and compliance enforcement to maintain a transparent and stable financial environment.
Stakeholders in the financial and foreign exchange markets will closely monitor the situation, as GTB and FBNBank’s activities in the next weeks will determine their reintegration into the forex trading scene.