The Bank of Ghana (BoG) has directed all forex bureau operators in the country to demand for a valid national identification of customers before engaging in any forex transaction.
The valid identification to be provided are a voter’s ID, passport, a national identification card or a driver’s licence before a forex business is transacted at any bureau.
The move is intended to provide for an audit trail of the customers’ business history and secure the country against financial crimes.
A notice signed by the Secretary to the Bank, Mrs Frances Van-Hein Sackey also directs that all licensed Forex Bureaux to submit the required monthly returns electronically to the Bank of Ghana within five after the end of each month.
Renewal of questionnaire
The central bank also wants forex bureaux operators to complete and submit a licence renewal questionnaire two months before the expiration of their licences. The questionnaire is expected to be submitted together with a copy of tax clearance certificate.
A Copy of Insurance Certificate and extract of audited accounts, bank statements and proof of filing of annual returns at the Registrar General’s Department are also expected to be attached to the required documents.
A source at the central bank said the regulations are not new and that the regulator is only enforcing and existing regulations.
“It’s always been there and we are using this as a reminder. We believe that, as is the case in other jurisdictions, the foreign exchange market needs some discipline”, the source said.
“For data requirements and monitoring purposes, we need to know sources of foreign exchange, where it is coming from and where it is going”, the source stated.
Enforcing regulations
It emphasized that the measures are not to regulate the market but to monitor and enforce the regulations of the 2006 foreign exchange Act.
As part of measures to enforce compliance by all licensed Forex Bureaux with the Forex Bureau Regulations issued in accordance with the Foreign Exchange Act, 2006 (Act 723), and the provisions of the Anti-Money Laundering Act, 2008 (Act 749).
The central bank also directs all purchases and sales of forex to be captured electronically and receipted accordingly by licensed Forex Bureaux.
Data Protection
It also asked licensed Forex Bureaux to comply with the provisions of the Data Protection Act, 2012 (Act 843) and must register with the Data Protection Commission of the Ministry of Communication as a key requirement for annual licence renewal.
It warned that failure to comply with this notice shall attract penalties, including pecuniary sanctions, suspension and revocation of licence in accordance with the Foreign Exchange Act 2006, (Act 723).
“Any person found transacting business with an unlicensed Forex Bureau or illegal forex dealers shall be dealt with in accordance with the Laws of Ghana”, the central bank warns.
Lucrative business
Forex bureau business is lucrative in Ghana and other West African countries. It is a vibrant business in Nigeria and Ghana, as well as neighbouring countries like Togo and Benin. alpari trading Bureau de Change as referred to in most of these countries also carries very high risk. But if well managed, the business is one of the most profitable in the region.
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This is long overdue.
... Just wait for the tsunami in 2020.... AS FOR THE NPP WICKEDEST PARTY EVER IN GHANA WE ARE GOING TO CAMPAIGN SERIOUSLY FOR THE RETURN OF THE NDC PAAAAA . We're simply waiting for 2020 to kick npp out by massively voting against npp and BOG and SEC and campaigning for ndc zealously to return to power in 2020 elections... GNBANK and Goldcoast Securities have provided incomes f poor people for decades.... Yet npp has destroyed them... They will regret this in 2020 elections by voting massively against npp
NDC WILL DEFINITELY BOUNCE BACK IN 2020.... WAIT AND SEE HOW UR NPP WILL LOSE 2020 ....THEY ARE NOW EVEN DESTROYING GN BANK AND GOLD COAST SECURITIES...STUIPIDDD FOOOOLLLLS NPP U ARE INDEEED BUFOOOOONNNNSSS PAAAAAAA....COMMON SENSE TELLS U THAT WE ARE GOING TO GANG UP AND CAMPAIGN FOR NDC TO COME BACK BCOS NPP IS CALLOUSSS AND WICKEDDDDDD SO NDC just introduce a new face and win the 2020 hands down and very very massively ....bcos we have ganged up to support ndc return to power to save Ghana and her local industries and businesses which npp is destroying so very fast ......gn bank and gold coast securities are dying so painfully.....these are institutions which have given incomes to poor and middle classes for over 25 yrs ..but npp is suddenly killing them due to some bogus policies and laws...we hold the power we will kick them out in 2020 bcos they have destroyed our country's financial sector so painfully
WHY NOT FREE PORT LIKE SOME OF OUR NEIGHBORS. THE GOVERNMENT KNOWS HOW TO STRATEGIES TO MAXIMIZE PROFIT. IE., TAKING EXORBITANT TAXES FROM WE THE DIASPORAS. JUST IMAGINE PEOPLE LEAVING THEIR VEHICLES A T THE PORTS TO BE SOLD CHEAP TO THEIR FOOT-SOLDIERS. =SICKENING=
Those without ID will flock to the black market if this is true. Government should realize that people do not like too much by way of regulations. If someone gives me 20 pounds and I don't have ID on me I will simply go to French line in Kumasi or Cow Lane in Accra or some other place Moreover, most bureau cannot be bothered to gather this information and so much trade will be off the books This is like telling all Ghanaians to register with ID before they get SIM cards Another waste of time! I guess people never learn
Good move