In a crackdown on illegal foreign exchange (FX) activities, law enforcement authorities in Kumasi have successfully apprehended four individuals operating outside the legal framework.
The arrest and subsequent convictions mark a notable achievement in the ongoing efforts to curb illicit financial activities within the Foreign Exchange market.
Reports indicate that the individuals were operating without the necessary licenses and approvals required by financial regulatory bodies.
The Asokwa Circuit Court 2 in Kumasi delivered a verdict, sentencing Senyah Poku and Yaa Serwaa of Senyah Poku Enterprise, an unlicensed foreign exchange bureau operating in Patase, Kumasi.
The court has imposed a fine of six hundred penalty units, equivalent to GHS7,200.00, on each of the individuals.
The convicted persons pleaded guilty to charges of “Conspiracy to Engage in the Business of Dealing in Foreign Exchange Without Licence” and “Engaging in the Business of Dealing in Foreign Exchange Without Licence.”
Background
The Ashanti Regional Police Command, Kumasi, in collaboration with the Other Financial Institutions Supervision Department (OFISD) and the Security Department of the Bank of Ghana investigated and arrested four persons dealing in foreign exchange without approval and a licence from the Bank.
The undercover investigation began on October 29,2023 and concluded on December 3, 2023.
The other suspects awaiting trial are Adam Isak and Alhassan Nuhu of Macowasi Forex Bureau, another unlicensed foreign exchange bureau also operating on the KNUST Campus, Kumasi.
The OFISD in conducting supervisory duties in Kumasi, detected certain anomalies in the Foreign Exchange (FX) market and their effective work and preliminary intelligence gathering, led them to several illegal/parallel foreign exchange market operators in the Kumasi area.
Foreign Exchange Laws
Ghana’s foreign exchange market is regulated by the Foreign Exchange Act 2006, Act 723. The Act cloaks the Bank of Ghana with all licensing, supervisory and regulatory authority.
According to Section 3(1) of the Foreign Exchange Act, 2006, Act 723, “A person shall not engage in the business of dealing in foreign exchange without a licence issued under this Act.”
Section 29(1)(a) of the Act further states that “A person who engages in the business of dealing in foreign exchange without a licence commits an offence and is liable on summary conviction to a fine of not more than seven hundred penalty units or a term of imprisonment of not more than eighteen months or both.’’
According to the Bank of Ghana, dealing in foreign exchange without approval or a licence is a punishable offence under the Foreign Exchange Act 2006, Act 723.