The Foreign Exchange Trading Licences of Guaranty Trust Bank Ghana Limited (GTB) and FBNBank Ghana Limited (FBN) will be suspended, with effect from March 18, 2024, for a period of one month, according to a statement made by the Bank of Ghana.
This prompt action is in reaction to many violations of regulations governing the foreign exchange market, including instances of fake documentation in their foreign exchange operations.
The Bank of Ghana is committed to preserving the integrity and stability of the foreign exchange market, and this move, according to the central bank, is strictly in line with section 11(2) of the Foreign Exchange Act 2006 (Act 723).
The suspension highlights the central bank’s zero-tolerance approach towards regulatory non-compliance and is a direct result of the banks’ failure to adhere to existing standards.
The Bank of Ghana has said that, provided GTB and FBNBank put in place efficient procedures, the suspended licences may be reactivated following the suspension period. These controls must guarantee strict respect to laws governing the foreign currency market, meeting the compliance standards set forth by the central bank.
Other participants in the foreign currency market are forewarned sharply by the suspension notification. The Bank of Ghana signals its readiness to impose regulatory measures to protect market integrity by highlighting the significance of rigorous adherence to all applicable forex market regulations and guidelines.
This development demonstrates how the Bank of Ghana is actively keeping an eye on the banking industry and enforcing compliance in order to promote a stable and transparent financial system.
The activities of GTB and FBNBank in the upcoming weeks will be critical in deciding their readmission into the forex trading scene, thus stakeholders in the financial and foreign currency markets will be keenly watching the situation.