Bank of Ghana suspends First Bank, GTB FX trading licences over alleged fraud

THE Bank of Ghana has suspended the foreign exchange (FX) and trading licences of the First Bank of Nigeria (FBN) and Guaranty Trust Bank (GTB) over alleged fraudulent operations.

In a statement issued on Monday, the Ghanaian apex bank said the suspension, which would take effect from March 18, 2024, is for one month.

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The suspension comes amid a high level of volatility in Nigeria’s FX market and the efforts by the Federal Government to restore stability.

The statement read in part,” Bank of Ghana has suspended the Foreign Exchange Trading Licences of Guaranty Trust Bank Ghana Limited (GTB) and FBN Bank Ghana Limited (FBN), effective 18th March 2024, for a period of one month, in accordance with Section 11 (2) of the Foreign Exchange Act 2006, (Act 723).

“This is due to various breaches of the foreign exchange market regulations, including fraudulent documentation in their foreign exchange operations which have come to the attention of the Bank of Ghana.

“The licence will be restored at the end of the one-month suspension period once the Bank of Ghana is satisfied that they have put in place effective controls to ensure strict adherence to regulations to the foreign exchange market,” the statement added.

The financial regulator called FX market players to heed applicable regulations and guidelines.






     

     

    Recall that on March 1, 2024, the Central Bank of Nigeria, CBN, revoked the licenses of 4,173 Bureau de Change, BDC, operators for not adhering to regulatory provisions.

    The First Bank of Nigeria has yet to issue an official response as of the time of filing this resport.

    The ICIR reached out to the official spokesperson of the First Bank of Nigeria, Folake Ani-Mumuney, to get the bank’s reactions to the development, but did not get any response.

    Also, the GTB has yet to issue any official statement regarding the development.

    Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.

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