The Bank of Ghana has announced an update to its foreign exchange trading system, introducing a centralised platform aimed at ensuring the integrity and development of the financial system.
Effective August 1, 2024, all licensed Foreign Exchange Bureaux in Ghana will be required to verify customer identities using Ghana Cards or Passports before conducting any transactions.
This new platform is a major milestone in the Bank of Ghana’s efforts to promote safe and sound operations within the foreign exchange market.
The initiative is designed to improve oversight for Directors and Management of the bureaux, and enhance the Bank’s ability to monitor and supervise their operations in compliance with the Foreign Exchange Act, 2006 (Act 723), the Anti-Money Laundering Act, (Act 1044), and other relevant regulations.
Per a Bank of Ghana statement, key requirements for the full utilization of the system include:
1. Trading with Licensed Dealers Only: The buying and selling of foreign currencies must be conducted exclusively through Bank of Ghana licensed dealers, including licensed Foreign Exchange Bureaux.
2. Platform Usage: All transactions at Foreign Exchange Bureaux must be conducted on the new centralized trading platform.
3. Electronic Receipts: Foreign Exchange Bureaux are mandated to issue electronic receipts to customers for all purchases and sales of foreign currencies.
4. Customer Identity Verification: In line with Bank of Ghana’s Notice No. BG/GOV/SEC/01 titled “Use of Ghana Card for All Financial Transactions”, individuals seeking to buy or sell foreign currencies must provide a Ghana Card or Passport (for foreign nationals) and undergo biometric verification.
The integration of the platform with the National Identification System ensures that all foreign currency transactions are conducted by verified individuals. Additionally, the platform is linked with the national payment system to facilitate electronic payments and the receipt of Ghana Cedis for foreign currency transactions at bureaux.
The Bank of Ghana emphasized that all foreign exchange transactions must be conducted through licensed dealers, reinforcing the importance of compliance with regulatory standards.
The move is part of broader efforts to enhance financial system security and integrity, ensuring that foreign exchange activities are transparent and properly regulated.