The Bank of Ghana (BoG) has imposed a one-month suspension on Consolidated Bank Ghana (CBG), preventing it from conducting any foreign exchange transactions starting 26th November 2024.
This restriction, issued under section 11 (2) of the Foreign Exchange Act, 2006 (Act 723), is expected to affect CBG customers who rely on the bank for foreign exchange services, particularly those with dollar or pound accounts.
According to BoG, the suspension was enforced due to multiple breaches by CBG of foreign exchange market regulations, including the Updated Guidelines for Inward Remittance Service for Payment Service Providers, which were issued in November 2023. The bank also reportedly violated the Anti-Money Laundering/Combating the Financing of Terrorism & the Proliferation of Weapons of Mass Destruction (AML/CFT&P) Act, as well as the Accountable Institutions Guideline from December 2022.
For customers, this suspension means limited access to essential foreign exchange services. During this period, CBG will not be able to handle any currency exchange transactions, including buying or selling foreign currencies. This restriction impacts customers who may need to convert their cedi accounts into foreign currencies like the dollar or pound for travel, business, or international payments.
Additionally, those with dollar or pound accounts at CBG may face limitations in accessing these funds for foreign transactions or remittances. While they may still be able to make deposits or withdrawals in foreign currency, any transaction involving currency exchange will not be possible through CBG during the suspension. Customers needing urgent foreign exchange services may have to consider using other banks or authorized forex bureaus.
The Bank of Ghana has clarified that CBG’s licence will be reinstated only if it demonstrates adequate controls to ensure compliance with foreign exchange regulations. In the meantime, BoG has urged all forex market players to adhere strictly to the regulations to maintain stability and compliance in the market.
