According to two reports by the International Monetary Fund (IMF) in 2003 and 2005 respectively, the lack of Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) legislation in Ghana affects both its reputation and its ability to fight the abuse of its financial system by money launderers. The 2005 U.S. Department of State (DoS) report observed that, as of August 2005, the banking sector lacked a strong regulatory framework to prevent money laundering and other suspicious transactions. Further, according to the same report, Ghana had also not shown much diligence in passing AML legislation that had been under review for several years. The Bank of Ghana (BoG) website states that as of 2007 an AML Bill is in Parliament and still awaits approval. Both the IMF and DoS report to the fact that Ghana has been procrastinating on developing a legal framework against money laundering and terrorist financing. A 2003 joint report by the International Bank for Reconstruction and Development and the IMF notes that the law enforcement agencies responsible for preventing money laundering and terrorist financing are the police, the Bureau of National Investigations, the Serious Fraud Office, the Customs, Excise and Prevention Service, the Immigration Service, the Attorney General and Ministry of Justice, and the courts. The financial sector regulators are the BoG, the Securities Exchange Commission, and the National Insurance Commission, and these agencies have the power to investigate suspicious transactions, which they then report to the appropriate law enforcement bodies.

General Overview

According to the 2003 and 2005 International Monetary Fund (IMF) reports, the lack of Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) legislation in Ghana affects both its reputation and its ability to fight the abuse of its financial system by money launderers. The 2005 U.S. Department of State (DoS) report also observed that, as of August 2005, the banking sector lacked a strong regulatory framework against money laundering and other suspicious transactions. Further, Ghana had not shown much diligence in passing AML legislation under review for several years. In this context, the Bank of Ghana (BoG) website informs that as of 2007 an AML bill is still in Parliament, awaiting approval. The information from the above sources point to the fact that Ghana has been procrastinating on developing a legal framework against money laundering.

The 2005 U.S. DoS report indicates that Ghana has criminalized money laundering in a limited way under the Narcotics Drug Control Enforcement and Sanctions Law of 1990, which provides for forfeiture of money-laundering related assets, disclosure of bank records for drug related offenses, and protection from liability to bank officials for cooperation with law enforcement authorities. However, the U.S. DoS report recommends that Ghana take more comprehensive steps towards establishment of an AML regime corresponding to international standards, and become a party to the United Nations (UN) Convention against Transnational Organized Crime.

The 2003 International Bank for Reconstruction and Development (IBRD)/IMF Joint report suggests that Ghana turned its focus toward fighting money laundering in 1997 in response to international concerns voiced by the General Secretariat of Interpol and various UN General Assembly sessions against economic and financial crime. Also in 1997, the Ghanaian government supported the BoG and the Inspector General of Police to create a Committee for Cooperation between Law Enforcement Agencies and the Banking Communities (COCLAB), with the objective of active collaboration and information sharing between law enforcement agencies and banks and other financial institutions to track down money laundering offenses. The COCLAB, as per the Joint report, has played a pivotal role in identifying illegal activities, sensitizing the financial communities as well as authorities to money laundering offences, and preparing the draft AML Bill.

The 2003 IBRD/IMF Joint report also mentions the role of the BoG as the financial regulator in combating money laundering in the Ghanaian financial sector, by issuing directives to all banks to establish adequate AML/CFT policies and procedures, and also by actively participating in the COCLAB. Other law enforcement agencies, according to the report, are the police, the Bureau of National Investigations, the Serious Fraud Office, the Customs, Excise and Prevention Service, the Immigration Service, the Attorney General and Ministry of Justice, and the courts. The other financial sector regulators are the Securities Exchange Commission (SEC), and the National Insurance Commission (NIC). The BoG, SEC and NIC have the power to investigate wrongdoing, including suspicious transactions; which they then report to the appropriate law enforcement bodies.

The Principles

1. Legal Systems and Related Institutional Measures

NC

The IMF, in its 2003 and 2005 reports, laments the lack of AML/CFT legislation in Ghana, noting that it affects both its reputation and its ability to fight the abuse of its financial system by money launderers. The 2005 U.S. Department of State (DoS) report also observed that as of August 2005, the banking sector lacked a strong regulatory framework against money laundering and other suspicious transactions. Further, Ghana had also not shown much diligence in passing AML legislation under review for several years. In this context, the Bank of Ghana (BoG) website informs that as of 2007 an AML bill is still in Parliament, awaiting approval. Both the IMF and DoS point out that Ghana has been procrastinating on developing a legal framework against money laundering.

According to the 2005 U.S. DoS report, Ghana has criminalized money laundering in a limited way under the Narcotics Drug Control Enforcement and Sanctions Law of 1990, which provides for forfeiture of money-laundering related assets, disclosure of bank records for drug related offenses, and protection from liability to bank officials for cooperation with law enforcement authorities. However, the U.S. DoS report recommends that Ghana take more comprehensive steps towards establishment of an AML regime corresponding to international standards, and become a party to the UN Convention against Transnational Organized Crime.

2. Preventive Measures - Financial Institutions

NC

According to the 2005 U.S. DoS report, despite being aware of the importance of AML measures, the Ghanaian banking sector does not have a strong AML regime, or a suspicious transactions reporting (STR) requirement. The report mentions the suspicion of the Ghanaian police that non-bank financial institutions, such as foreign exchange bureaus, are used as vehicles to launder the proceeds of narcotics-trafficking. As regards STRs, the 2005 U.S. DoS report reveals that the BoG requires the commercial banks under its regulation to report their 20 largest deposits and 20 largest withdrawals on a weekly basis. Further, the BoG has circulated the list of individuals and entities on the UN Security Council Resolution (UNSCR) 1267 Sanctions Committee's consolidated list to local banks, although no assets pertaining to the list have been identified.

3. Preventive Measures - Designated non-Financial Business and Professions

II

There is insufficient information publicly available as to Ghana's compliance with this principle.

4. Legal Person and Arrangements & Non-Profit Organizations

II

There is insufficient information publicly available as to Ghana's compliance with this principle. According to the 2005 U.S. DoS report, the Ghanaian police force has indicated that donations to religious institutions have been used as a vehicle to launder money.

5. National and International Co-operation

II

The 2005 U.S. DoS Report observes that "domestic security agencies cooperate in the fight against terrorism but need assistance." Further, Ghana is a party to all twelve UN conventions on terrorism, including the UN International Convention for the Suppression of the Financing of Terrorism. In addition, Ghana is a party to the 1988 UN Drug Convention. Ghana also has bilateral information sharing agreements related to ML with the United Kingdom, Germany, Brazil, and Italy. Nonetheless, there is insufficient information publicly available as to Ghana's compliance with this principle.