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By Our Reporter
The Central Bank of Ghana otherwise known as Bank of Ghana has suspended the foreign exchange licence of Guaranty Trust Bank and First Bank of Nigeria over regulatory breaches.
In a statement issued by the apex bank on Tuesday, the suspension will commence on March 18 and this comes barely three months after it barred eight money transfer organisations (MTOs) from offering remittance services without regulatory approval as the apex bank seeks to regulate the foreign exchange market.
The statement added that the affected commercial banks committed various breaches of the foreign exchange market regulations, including submitting fraudulent documentation in their forex operations.
The suspension is in line with Section 11 (2) of the Foreign Exchange Act 2006, which gives the Bank of Ghana the power to suspend a licence for a period instead of revoking it.
Reacting via a statement issued on Tuesday, Guaranty Trust Bank said it is “actively collaborating with the Bank of Ghana to swiftly address the trade-related issues leading to the suspension.”
The bank also reassured customers that all other business operations remained unaffected as the suspension was limited to its foreign exchange segment.
The Bank of Ghana said in a statement that it would restore the banks’ licences after one month if it is satisfied that the banks “put in place effective controls” to ensure strict adherence to regulations.
The apex bank also warned other financial institutions and called for strict adherence to forex market regulations and guidelines.
