After being downgraded by the international
Financial Action Taskforce (FATF) in the crusade against Money Laundering (ML)
and Financing Terrorism (FT) activities, Ghana is seeking to redeem its image
through the implementation of a robust Anti-Money Laundering (AML) Counter
Financing Terrorism (CFT) compliance measures.
It is against this background that the Bank
of Ghana (BoG) is urging banking and non-banking financial institutions to
adopt the practice of due diligence to check suspicious transactions and report
to the appropriate quarters for further actions.
The Governor of the Bank of Ghana, Mr.
Kwesi Bekoe Amissah-Arthur, made the call when he addressed participants at a
two-day workshop for Commercial Bank Chief Executives and Chief Compliance
Officers towards raising awareness against the deleterious effects of Money
Laundering and Terrorist Financing (ML/TF) in the ECOWAS region.
The workshop which is being organized in
Accra by the Inter-Governmental Action Group against Money Laundering in West
Africa (GIABA) has about 150 chief banking officers from ECOWAS countries in
attendance.
This is also meant to intensify and
strengthen the ECOWAS regional alliance in the crusade against money laundering
and terrorism financing in West African states.
The prime object of the workshop is to
sensitize and raise the awareness of commercial bank executives and chief
compliance officers on AML/CFT regimes, especially the mandate of GIABA in the
fight against the scourges of money laundering and terrorist financing.
He said as a result of the feeble technical
and administrative capacity of intelligence units and law enforcement agencies,
the combat against these organized crimes have led to a lot of deficiencies.
“These create uncertainties for the
international financial institutions which do business with our banks since
these risks or their perception can adversely affect the flow of financial
resources to the sub-region or increase the cost if available,” the BoG Boss
stated.
Mr. Amissah-Arthur therefore called for the
expedition of action in ensuring that there is effective coordination among all
stakeholders to remove all obstacles.
He maintained that following the
downgrading of Ghana in February, 2012, banks have now been requested by their
correspondents and regulatory bodies to institute enhanced due diligence on
certain customers.
He further indicated that compliance
officers have been swarmed with additional tasks, by following up on
transactions of customers.
“Building an effective and robust AML/CFT
regime at the national level requires action at many levels; Governments are
expected to set up the appropriate inter-ministerial structures, together with
the development of a national strategy for dealing with AML/CFT deficiencies,”
the BOG Boss underscored.
He further admonished ECOWAS governments to
ensure the passage of the relevant laws that criminalize money laundering and
terrorist financing related offences.
“Regulatory authorities are also required
to carry out supervisory activities to ensure that banks and other financial
institutions are not only effectively implementing the recommendations but
ensuring that criminals and their associates are not misusing the banking
system,” indicated Mr. Amissah-Arthur.
For his part, the Head of Programmes and
Projects at GIABA, Dr. Buno Nduka, who stood in for the GIABA Director-General,
Dr. Abdullahi Shehu, pointed out that GIABA is a specialized institution of the
Economic Community of West African States (ECOWAS) as well as Financial Action
Task Force –Styled Regional Body (FSRB) responsible for combating the scourge
of Money Laundering (ML) and Terrorist Financing (TF) in West Africa.
He said GIABA was established by the
Authority of Heads of State and Government of the Economic Community of West
African States (ECOWAS) in the year 2000 with the mandate to protect the
national economies and the financial systems of member States from abuse and
the laundering of the proceeds of crimes.
He revealed that the workshop which is the first of its kind in Ghana
underscores the necessity to build the capacities of operators in the financial
systems.
“To enable GIABA to achieve its objectives, the ECOWAS Council of
Ministers, in December, 2006 approved the GIABA Strategic Action Plan
2007-2009. The implementation of this Action Plan ended in December, 2009.
....In compliance with the ECOWAS Ministerial Council Regulation
adopting measures for the improvement of ECOWAS institutions, an independent
consultant was engaged to evaluate the implementation of the Action Plan,” Mr.
Nduka said.
He further disclosed that in August 2010, the report of commended GIABA
for the modest achievement and in particular, for becoming a veritable focal
point for AML/CFT coordination and capacity building in West Africa.
He said in line with the findings of the independent assessor, GIABA has
developed and commenced the implementation of a four-year new Strategic Plan
2011-2014 with the overarching goal “To Foster, Sustain, And Strengthen A
Regional Alliance Of Committed Stakeholders In The Fight Against Money
Laundering And Terrorist Financing In West Africa.”
“To meet this goal, GIABA designs its annual work programmes within the
context of Results-Based Management Principles (RBM) Principles. One of the
areas of priority in the current Strategic Plan is the enhancement of capacities
of accountable institutions,” the GIABA Programmes Director stated.
He underscored that the identified deficiencies in the AML/CFT regimes
of our member States call for common and coordinated action by all ECOWAS
countries.
He continued that the low level of compliance to the FATF Standards by
GIABA member States is reminiscence of the environmental peculiarities of the
region.
Therefore, there is the need to enhance regulatory and enforcement
measures.
“This workshop would ensure that we solicit the support of top
management of banks in promoting the implementation of effective AML/CFT
measures in the region.
...At the end of the day it is meant to acquaint top management of banks
on issues of good corporate governance that are central to promoting the
implementation of AML/CFT Compliance
Culture required for efficient and sound financial systems.
It will also create the necessary platform to promote networking among
operators in the sub-region that will facilitate information sharing and dissemination
on AML/CFT issues,” Dr. Buno Nduka stressed.
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