Money laundering: BoG places GH¢60,000 fine on banks, others

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Banks and Specialised Deposit Taking Institutions (SDIs) that fail to comply with the central bank’s Anti-Money Laundering regulations risk paying as much as sixty thousand cedis (GH¢60,000) in fine beginning this month.

This follows the implementation of the Bank of Ghana’s laws on Anti-Money Laundering (AML).

The document also comes days after a foiled cyber attack on UMB.

In all, nineteen lapses and their corresponding fines have been outlined by the Bank of Ghana.

The fines for some offences however differ from banks to Specialized Deposit Taking institutions.

They range from 2000 to 5,000 penalty units with each penalty unit being equivalent to 12 cedis.

But the highest of 5,000 penalty units, is applicable to both institutions.

For instance, as a bank or SDI, you will be made to pay as much as 60,000 cedis if, you amongst others, fail to submit and implement employee education and training program, fail to report unusual and complex large or suspicious transactions or conduct business with shell banks.

Also, a bank which fails to develop and implement Internal Rules and Policies, Internal Risk Assessment Framework as well as fail to appoint an Anti-Money Laundering Reporting Officer at management level, will be liable to 4000 penalty units, equivalent to 48,000 cedis.

Meanwhile both a bank and Specialised Deposit Taking Institution will be made to pay a fine of 2000 penalty units or 24,000 cedis if they fail to conduct effective Customer Due Diligence.

While a bank is liable to 60,000 cedis for failing to submit and implement employee education and training program, a specialized deposit taking institution which fails to screen when hiring new employees and not making Anti-Money Laundering or Combating Financial Terrorism performance part of employee annual appraisals, will be liable to 24,000 cedis in fine.

One could say the central bank’s intervention is timely as a Cyber Forensic analyst with E-Crime Bureau, Philemon Hini in an earlier interview with Citi Business News blamed banks for lacking measures to combat financial crime.