Ghana’s central bank has shed light on the potential repercussions individuals face when possessing sudden unexplained wealth, a situation often linked to money laundering, which could lead to incarceration upon prosecution.
According to the latest Financial Literacy document released by the Bank of Ghana, individuals with sudden unexplained wealth are expected to furnish satisfactory explanations regarding the origins of their assets to relevant authorities.
The bank cautioned the public to exercise caution when handling funds received from third parties via their bank accounts, emphasizing the potential legal ramifications.
“Sudden unexplained wealth could be as a result of money laundering and you could be prosecuted. Be sure to be in a position to satisfactorily explain your source of wealth.
“Don’t allow a third party to receive and or transfer funds through your bank account. You could be aiding money laundering or terrorist financing which is crime a punishable by law,” the bank said.
The document emphasized that sudden unexplained wealth may be indicative of money laundering, a process through which unlawfully obtained money is laundered through intricate transactions to conceal its illegal origins.
Additionally, the document highlighted the offense of ‘Terrorism Financing,’ warning of its severe economic, security, and social consequences for nations, businesses, and individuals.
It stressed that financing terrorism is a punishable crime and individuals should not become conduits for such activities.
“Terrorist financing includes the provision of funds and financial support to individuals, state and non-state actors for the purpose of extremist acts and the promotion of terrorism and terrorist organizations.
“Financing of terrorism is a crime and is punishable by law. When you provide your legitimately or illegitimately acquired funds/assets for terrorist activities or organizations, you are financing terrorism. Be careful you do not become a conduit for such activities.
“You may be required to disclose and prove the source of funds used to undertake transactions at all Bank of Ghana licensed and regulated financial institutions,” the Bank said.
Furthermore, the bank underscored the importance of disclosing and substantiating the sources of funds used in transactions at all licensed and regulated financial institutions under the purview of the Bank of Ghana.
Ghana’s commitment to combatting money laundering and terrorism financing was reinforced with the enactment of the new Anti-Money Laundering Act, 2020 (Act 1044) on December 29, 2020. This legislation consolidates laws related to the prohibition of money laundering and imposes strict penalties, including fines and imprisonment, for various money laundering infractions.