….First Bank Says FX Licence Suspension Issues Will Be Resolved
The Bank of Ghana on Tuesday announced the suspension of the Foreign Exchange Trading Licences of Guaranty Trust Bank Ghana Limited (GTB) and FBNBank Ghana Limited (FBN) for 30 days effective from 18th March 2024 over regulatory infractions.
Specifically, the apex bank linked its action on the two banks to various breaches of FX market regulations, including incidents of fraudulent documentation within the lenders’ foreign exchange operations.
According to the central bank, the regulatory sanction is in accordance with section 11 (2) of the Foreign Exchange Act 2006, (Act 723), underscoring the Bank of Ghana’s commitment to maintaining the integrity and stability of the foreign exchange market.
The Bank of Ghana, however, stated that the suspended licences could be restored to the lenders after the suspension period, contingent on their implementation of effective controls, which must ensure rigorous adherence to foreign exchange market regulations, satisfying the central bank’s requirements for compliance.
While noting that the suspension of the FX licences of GTB Ghana and First Bank Ghana will serve as a stern warning to other players in the country’s FX market, Bank of Ghana harped on the importance of strict compliance with all applicable FX market regulations and guidelines and its readiness to enforce regulatory measures to safeguard market integrity.
However, First Bank of Ghana has immediately responded to the suspension of its FX licence and assured its customers that the issues relating to the licence suspension would be amicably resolved with the nation’s monetary authorities.
It stated that its banking operations would not be affected during the 30-day timeline the FX licence will not be used
The bank, in a statement indicated that its management was already collaborating with the Bank of Ghana to amicably resolve the FX trade-related issues issues that led to the 30-day suspension of its foreign exchange trading license.
It clarified: “We refer to the Bank of Ghana’s announcement of the 30-day suspension of our Foreign Exchange Trading Licence effective March 18, 2024, and would like to inform our valued customers and esteemed stakeholders that we are collaborating with the Bank of Ghana to rectify the identified trade-related concerns.”
“FBNBank wants to reassure its valued customers that when the suspension takes effect, the Bank’s other business segments and services will continue to be fully operational.
This includes branch operations, agent banking partners, and channels for seamless banking. We reaffirm our commitment to our customers and stakeholders and will continue to maintain the high ethical standards we are renowned for”, the bank added.
