Bank of Ghana issues Guidelines on Anti-Money Laundering for Foreign Exchange Bureaux

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.

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.