In a decisive move to address multiple violations of foreign exchange market regulations, the Bank of Ghana has announced the suspension of Guaranty Trust Bank Ghana Limited (GTB) and FBNBank Ghana Limited (FBN) trading licenses for one month, effective March 18, 2024.
“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,” stated the Bank of Ghana.
The central bank emphasises its commitment to preserving the integrity and stability of the foreign exchange market, citing Section 11(2) of the Foreign Exchange Act 2006 (Act 723) as the basis for the suspension.
“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 statement continued.
Provided GTB and FBNBank implement efficient procedures ensuring strict compliance with foreign currency market laws, the suspended licenses may be reactivated after the one-month suspension period, as outlined by the Bank of Ghana.
This move serves as a warning to other participants in the foreign currency market, underlining the central bank’s readiness to impose regulatory measures to protect market integrity. The Bank of Ghana stresses the significance of rigorous adherence to all applicable forex market regulations and guidelines.
The development underscores the Bank of Ghana’s active oversight of the banking industry, enforcing compliance 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,” concludes the statement.
