Bank of Ghana suspends FX trading licences of GTB, FBN over ‘regulatory

The Bank of Ghana says it has suspended the foreign exchange (FX) trading licences of two Nigerian-owned banks over fraudulent documentation during operations.

The Ghanaian apex bank, in a statement on Monday, said the suspension which will take effect from March 18, 2024, is for one month.

The two financial institutions are Guaranty Trust Bank (GTB) and First Bank of Nigeria (FBN).

The development comes amid high levels of volatility in Nigeria’s FX market and the efforts by the federal government to restore stability.

“Bank of Ghana has suspended the Foreign Exchange Trading Licences of Guaranty Trust Bank Ghana Limited (GTB) and FBNBank Ghana Limited (FBN), effective 18th March 2024, for a period of one (1) month, in accordance with section 11 (2) of the Foreign Exchange Act 2006, (Act 723),” the statement reads.

“This is as a result of 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 financial regulator also urged FX market players to adhere strictly to the applicable regulations and guidelines.

Meanwhile, on March 1, 2024, the Central Bank of Nigeria (CBN) revoked the licences of 4,173 bureau de change (BDC) operators for failing to observe regulatory provisions.