Weak forex controls could cost banks their trading licences

The Bank of Ghana has issued a stern warning to commercial banks, placing the renewal of their foreign exchange trading licences squarely on the line after uncovering serious weaknesses in how some institutions handle foreign currency transfers.

In a strongly worded public notice dated January 12, 2026, the central bank revealed that recent supervisory examinations and market surveillance uncovered “material weaknesses, lapses and inconsistencies” in internal control systems governing the initiation, processing and reporting of foreign currency transactions at some licensed dealer banks.

The regulator cautioned that these deficiencies significantly heighten operational and reputational risks within the banking sector, increasing exposure to fraud, financial crime and money laundering, while threatening the integrity and orderly functioning of Ghana’s foreign exchange market.

In a move that raises the stakes for banks, the Bank of Ghana made it clear that the renewal—and continued validity—of foreign exchange trading licences will now be strictly contingent on “demonstrable and sustained compliance” with regulatory requirements and internal control standards.

“All licensed dealer banks are hereby directed to strengthen and strictly adhere to their established internal control frameworks for the management of foreign currency transactions,” the notice said.

This effectively signals a tougher supervisory posture, as the central bank seeks to ring-fence the forex market at a time when currency stability and confidence remain critical to Ghana’s broader macroeconomic recovery.

Under the new directive, banks are required to enforce robust verification protocols for all foreign currency transfer instructions, including multi-tier authorisation and enhanced customer identification procedures.

The central bank is also insisting on tighter Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) checks, with mandatory reporting of all suspicious transactions.

To further reduce fraud risks, banks must ensure clear segregation of duties among staff responsible for initiating, processing, approving and executing foreign currency transactions. In addition, system-based monitoring controls must be active and up to date to detect unusual transaction patterns, unauthorised access and other anomalies.

Daily reconciliation of foreign exchange accounts and transaction logs is now mandatory, with all discrepancies required to be investigated and resolved within 24 hours.

The Bank of Ghana is also pushing accountability to the boardroom. Banks are required to conduct periodic internal audits of foreign currency transfer procedures, escalate findings to their Board Audit Committees, and make such reports available to the regulator upon request.

Regular training and capacity-building programmes for frontline, operations and back-office staff have also been made compulsory to ensure continuous compliance with forex regulations.

The regulator did not mince words on enforcement. It warned that non-compliance with the directives constitutes a breach of prudential and foreign exchange regulations and could attract sanctions under the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930) and the Foreign Exchange Act, 2006 (Act 723).

“The Bank of Ghana expects the full cooperation of all Licensed Dealer Banks in ensuring strict compliance with these directives in order to preserve the credibility, integrity and stability of Ghana’s financial system,” the notice read.