Bank of Ghana suspends forex trading licenses of GTB, First Bank

The Bank of Ghana (BoG) has announced the suspension of the Foreign Exchange Trading Licenses of Guaranty Trust Bank Ghana Limited (GTB) and FBNBank Ghana Limited (FBN) effective March 18, 2024, for a period of one month. This action comes in response to various breaches of foreign exchange market regulations, including fraudulent documentation in their foreign exchange operations.

According to the BoG, the decision to suspend the licenses is in line with section 11 (2) of the Foreign Exchange Act 2006, (Act 723). The central bank stated that it had uncovered instances of fraudulent documentation by the two banks, prompting the suspension of their trading licenses.

The suspension of the licenses will remain in effect for one month. During that time, the banks are expected to rectify the breaches and implement adequate controls to ensure strict adherence to foreign exchange market regulations. The BoG emphasized that the licenses would only be restored upon satisfaction that the banks have implemented necessary measures to comply with regulations.

Reacting via a statement issed 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.

 

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