The Bank of Ghana has announced the suspension of The Foreign Exchange Trading Licences of Guaranty Trust Bank Ghana Limited (GTB) and FBNBank Ghana Limited (FBN), have been suspended by the Bank of Ghana.
The suspension which takes effect from March 18, 2024, is for one month.
The action was said to be in response to alleged breaches of foreign exchange market regulations, including incidents of fraudulent documentation within their foreign exchange operations.
According to the Bank of Ghana, this measure is in strict accordance with section 11 (2) of the Foreign Exchange Act 2006, (Act 723), which underscores the bank’s commitment to maintaining the integrity and stability of the foreign exchange market.
The suspension is a consequence of the banks’ failure to comply with established regulations, highlighting the central bank’s zero-tolerance policy towards regulatory non-compliance.
The Bank of Ghana has outlined that the suspended licences could be reinstated after the suspension period, contingent on GTB and FBNBank’s implementation of effective controls. These controls must ensure rigorous adherence to foreign exchange market regulations, satisfying the central bank’s requirements for compliance.
The suspension announcement serves as a stern warning to other players in the foreign exchange market. The Bank of Ghana emphasises the importance of strict compliance with all applicable forex market regulations and guidelines, signalling its readiness to enforce regulatory measures to safeguard market integrity.
This development indicates the Bank of Ghana’s proactive stance in monitoring the banking sector and enforcing compliance to foster a transparent and stable financial environment.
Stakeholders in the financial and foreign exchange markets will closely monitor the situation, as the actions of GTB and FBN Bank in the coming weeks will be crucial in determining their reintegration into the forex trading landscape.
