GHANAIAN AML/CFT

COMPLIANCE LAWS
Presented by

ERM
Institute

Saturday, 21st
February, 2015
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GHANAIAN AML/CFT COMPLIANCE LAWS

Overview of Ghanas
AML/CFT Regime

GHANAIAN AML/CFT COMPLIANCE LAWS

OVERVIEW CONTD

GHANAIAN AML/CFT COMPLIANCE LAWS

Anti-Money
Laundering Act, 2008
(Act 749)

The Anti-Money Laundering Act, 2008 (Act 749)

which is the foremost AML law among other things:
Defines Money Laundering as a crime and
stipulates what constitutes aiding and abetting
of the crime of money laundering.
Stipulates penalties of up to ten (10) years of
imprisonment for the offence of money laundering.
Established the Financial Intelligence Centre
(FIC) as the main AML watchdog in the country.

GHANAIAN AML/CFT COMPLIANCE LAWS

Anti-Money
Laundering Act, 2008
(Act 749)
Provides a list of accountable institutions and the records

to be kept by
those accountable institutions including the duration of those records.
Allows the FIC to request for information from accountable institutions
including banks.
Provides for Suspicious Transaction Report (STR) by accountable
institutions and the reporting of electronic transfers.
Requires the formulation and implementation of internal rules for purposes
of AML by accountable institutions.
Provides for the training of employees in AML and the mandatory
appointment of a compliance officer to ensure observance of obligations of
accountable institutions under the law.
Allows for investigation of suspected offences by investigating state bodies
and the freezing of transactions or accounts.
Prescribes offences and penalties in relation to compliance and provides
for referral of accountable institutions to the Bank of Ghana for
administrative sanctions.

GHANAIAN AML/CFT COMPLIANCE LAWS

Anti-Money
Laundering
Regulations, 2011( LI
The major highlights of the
Regulations are as follows:
1987)

Regulation 1 stipulates the need for internal rules on AML/CFT.

These internal rules include programmes of risk assessment for
AML/CFT, control policy, monitoring policy, Enhanced Due
Diligence (EDD), training of employees and
establishment/maintenance of a manual of compliance procedures
related to AML.
Regulation 2 stipulates the need for internal rules related to
establishment and verification of identity of clients of accountable
institutions. It also provides for disciplinary steps against
relevant staff for non-compliance with AML/CFT regime.
Regulation 3 provides for internal rules related to record keeping.

GHANAIAN AML/CFT COMPLIANCE LAWS

Anti-Money
Laundering
Regulations, 2011( LI
1987)
Regulation 4 provides
for internal rules related to

reporting suspicious and unusual transactions.

Regulation 5 mandates the appointment of an AML
Reporting Officer by accountable institutions including
banks.
Regulations 8 to 10 discusses Politically Exposed
Persons (PEPs) and the way they should be treated by
accountable institutions.
Regulation 11 stipulates the need for a conduct of due
diligence on existing clients and Regulation 12 stipulates
the update of records by acc. institutions.

GHANAIAN AML/CFT COMPLIANCE LAWS

Anti-Money
Laundering
Regulations, 2011( LI
1987)for general rules on
Regulation 13 provides

identification of clients.
Regulations 14 to 20 discuss the verification of
individuals whilst Regulations 21 to 31 discusses the
verification of legal persons.
Regulations 32 to 36 discuss the reporting of
suspicious or unusual transactions.
Regulation 37 discusses the use of reference
accounts by financial institutions.
Regulation 38 stipulates guidelines to be issued by
the FIC.
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GHANAIAN AML/CFT COMPLIANCE LAWS

Anti-Money
Laundering
Regulations, 2011( LI
1987)
Regulation 39 mandates
the FIC to provide feedback to

accountable institutions on pertinent issues such as STRs.

Regulation 42 makes FIC a member of the Egmont Group
of Financial Intelligence Units (FIU), a forum for FIUs
around the world to improve cooperation in the fight
against ML and FT.
Regulation 43 allows the FIC to review AML measures and
CFT systems in the country on a regular basis in
consultation with supervisory bodies.
Regulation 44 prescribes offences and penalties for the
contravention of these Regulations by accountable
institutions.

GHANAIAN AML/CFT COMPLIANCE LAWS

Anti-Terrorism Act,
2008 (Act 762) and
the Anti-Terrorism
(Amendment) Act,
2012 (Act 842)
Act 762 and its amendment 842 were based to help in the

fight against terrorism. Among other things, the Antiterrorism Act and its amendment:
Defines what constitutes terrorism with respect to banking.
Allows Ghanas High Court to order funds suspected to be
related to terrorist activity to be frozen immediately.
Stipulates persons holding funds of terrorist entities to
report without delay to the FIC of frozen funds.
Stipulates clearly that provision of financial services for
commission of a terrorist act is an offence.
Provides for Regulations to its effective implementation.
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GHANAIAN AML/CFT COMPLIANCE LAWS

Anti-Terrorism
Regulations, 2012
(L.I. 2181)

The Anti-Terrorism Regulations, 2012 (L.I. 2181) among other

things:
Prohibits the provision of financial or other related services
to specified entities.
Specifies what will necessitate an organization to be
described as associating with acts of terrorism or proliferation
of Weapons of Mass Destruction (WMD).
Allows for the freezing of funds of a person engaged in
terrorism or proliferation of WMD.
Places a duty on accountable institutions to report on funds
frozen by order of the High Court to the FIC.
Places a duty on accountable institutions to report on
suspicious or unusual transactions to the FIC.

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GHANAIAN AML/CFT COMPLIANCE LAWS

BOG/FIC) Anti-Money
Laundering/Combatin
g the Financing of
Terrorism (AML/CFT)
Guideline, 2011.

Following the enactment of the Anti-Money Laundering Act, 2008 (Act 749),
the Anti-Terrorism Act, 2008 (Act 762) and the subsequent passage of the
Anti-Money Laundering Regulations, 2011 (L.I.1987), Ghana is now giving
necessary attention to the fight against money laundering and terrorist
financing.
The benefit of the Anti-Money Laundering Act will not be realized unless
there is effective implementation of the collaborative measures being
adopted by the Bank of Ghana (BOG) and the Financial Intelligence Centre
(FIC) as well as compliance by licensed financial institutions. It is against
this background that the BOG and FIC in accordance with section 6(d) of Act
749 and Regulation 38 of L.I.1987 developed the Guideline for financial
institutions licensed by the Bank of Ghana.

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GHANAIAN AML/CFT COMPLIANCE LAWS

BOG/FIC) Anti-Money
Laundering/Combatin
g the Financing of
Terrorism (AML/CFT)
The GuidelineGuideline,
has incorporated 2011.
essential elements of

the AML Act and Regulations, relevant FATFRecommendations, the sound practices of the Basle
Committee on Banking Supervision and other
international best practices on Anti-Money Laundering
and the Combating of the Financing of Terrorism
(AML/CFT).
To provide a further guide and to avoid ambiguity, the
Guideline on KYC is also provided to assist financial
institutions in their implementation of the Guideline.

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GHANAIAN AML/CFT COMPLIANCE LAWS

BOG/FIC) Anti-Money
Laundering/Combatin
g the Financing of
Terrorism (AML/CFT)
Guideline, 2011.

The Guideline covers among others the following key areas of AML/CFT policy;
Reporting Officer designation and duties; the need to co-operate with the
supervisory authority; customer due diligence; monitoring and responding to
suspicious transactions; reporting requirements; record keeping; and AML/CFT
employee training program.
Financial institutions are exposed to varying money laundering risks and serious
financial and reputational damage if they fail to manage these risks adequately.
Diligent implementation of the provisions of this Guideline would not only
minimize the risk faced by licensed financial institutions of being used to
launder the proceeds of crime but also provide protection against fraud and
reputational and financial risks. In this connection, the affected institutions are
directed to adopt a risk-based approach in the identification and management
of their AML/CFT risks.

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GHANAIAN AML/CFT COMPLIANCE LAWS

BOG/FIC) Anti-Money
Laundering/Combatin
g the Financing of
Terrorism (AML/CFT)
Guideline, 2011.

Ghanaian financial institutions are also reminded that AML/CFT

laws in all the jurisdictions in which they operate should not only
designate money laundering and predicate offences but should
also prescribe sanctions for non-compliance with the relevant laws
and regulations on customer due diligence, non-rendition of
prescribed reports and not keeping of appropriate records. It is,
therefore, in their best interest to entrench a culture of compliance
which would be facilitated by the Guideline.
The Guideline is structured in two, Part A made up of the new
AML/CFT Directives while Part B provides guidance on KYC
(FIC/BOG)

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GHANAIAN AML/CFT COMPLIANCE LAWS

(SEC/FIC) (AML/CFT)
Compliance Manual
for Capital Market
Operators, 2011.
Under Section 9 (b) (d) (i) and (k), of the Securities Industry Act
1993, PNDCL 333 (as amended) (SIA), empowers the Commission
to protect the integrity of the Securities Market against all forms
of abuses.
Furthermore the Anti-Money Laundering Act, 2008, Act 749 and
its accompanying regulation, Anti-Money Laundering Regulations,
2011, LI 1987 and the Anti-Terrorism Act, 2008, Act 762 requires
supervisors and regulators of relevant institutions in Ghana
including regulators of financial institutions to give guidance to
their regulated entities on Anti-Money Laundering and Combating
the Financing of Terrorism (AML/CFT).

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GHANAIAN AML/CFT COMPLIANCE LAWS

(SEC/FIC) (AML/CFT)
Compliance Manual
for Capital Market
Operators, 2011.
Given the prominence that financial crimes especially
money laundering (ML) and terrorist financing (FT) have
assumed in International financial markets, and the risks
they pose to the financial markets globally and to Ghana in
particular, the need for a comprehensive effort to fight this
menace has been realized. It is against this background that
the Securities and Exchange Commission (SEC) and the
Financial Intelligence Center (FIC) in accordance with
Section 6(d) of Act 749 and Regulation 38 of L.I.1987 have
developed this manual to guide Capital Market Operators
(CMOs) to enhance their monitoring and surveillance
systems with a view to preventing, detecting and
responding appropriately to ML and FT risks.
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GHANAIAN AML/CFT COMPLIANCE LAWS

(SEC/FIC) (AML/CFT)
Compliance Manual
for Capital Market
Operators, 2011.
This manual is also designed to manage the
risks faced by CMOs on the laundering of the
proceeds of crime and will also provide
protection against fraud, reputational and other
risks. Consequently, all CMOs are required to
adopt a risk based approach in the
identification and management of their AML/CFT
risks in line with the requirements of this
manual.
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GHANAIAN AML/CFT COMPLIANCE LAWS

(SEC/FIC) (AML/CFT)
Compliance Manual
for Capital Market
Operators, 2011.

This manual has been enriched by the Financial Action Task Force (FATF)
Recommendations and international best practice.
The Anti-Money Laundering Act, 2008(Act 749) and its accompanying
regulation, Anti-Money Laundering Regulations, 2011(LI 1987) and the AntiTerrorism Act, 2008, Act 762 have prescribed sanctions for non-compliance.
Some of the provisions cover clients due diligence issues, non-rendition of
prescribed reports as well as failure to keep appropriate records. It is,
therefore, in the best interest of CMOs to ensure compliance at all times with
the prescriptions contained herein.
The manual must be read in conjunction with the Anti-Money Laundering Act,
2008(Act 749) and its accompanying regulation, Anti-Money Laundering
Regulations, 2011(LI 1987) and the Anti-Terrorism Act, 2008(Act 762).(SEC/FIC
2011)

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GHANAIAN AML/CFT COMPLIANCE LAWS

(NIC/FIC) (AML/CFT)
Compliance
Guidelines, 2011.
The NIC/FIC Guidelines have incorporated
essential elements of the AML Act and
Regulations, relevant FATF-Recommendations,
the sound practices of the International
Association of Insurance Supervisors (IAIS) and
other international best practices on AntiMoney Laundering and the Combating of the
Financing of Terrorism (AML/CFT).
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GHANAIAN AML/CFT COMPLIANCE LAWS

(NIC/FIC) (AML/CFT)
Compliance
Guidelines, 2011.
To provide a further guide and to avoid ambiguity, the
Guideline on KYC is also provided to assist insurance
practitioners in their implementation of these Guidelines.
The Guidelines cover the following key areas of AML/CFT
policy; Reporting Officer designation and duties; the
need to co-operate with the supervisory authority;
customer due diligence; monitoring and responding to
suspicious transactions; reporting requirements; record
keeping; and AML/CFT employee training program.

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GHANAIAN AML/CFT COMPLIANCE LAWS

(NIC/FIC) (AML/CFT)
Compliance
Guidelines, 2011.

Insurance practitioners are exposed to varying money laundering risks

and serious financial and reputational damage if they fail to manage
these risks adequately. Diligent implementation of the provisions of this
Guideline would not only minimize the risk faced by licensed insurance
practitioners of being used to launder the proceeds of crime but also
provide protection against fraud and reputational and financial risks. In
this connection, the affected institutions are directed to adopt a riskbased approach in the identification and management of their AML/CFT
risks.

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GHANAIAN AML/CFT COMPLIANCE LAWS

(NIC/FIC) (AML/CFT)
Compliance
Guidelines, 2011.

Ghanaian insurance practitioners are also reminded that AML/CFT laws

in all the jurisdictions in which they operate should not only designate
money laundering and predicate offences but should prescribe sanctions
for non-compliance with the relevant laws and regulations on customer
due diligence, non-rendition of prescribed reports and not keeping of
appropriate records. It is, therefore, in their best interest to entrench a
culture of compliance which would be facilitated by the Guidelines.

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GHANAIAN AML/CFT COMPLIANCE LAWS

(NIC/FIC) (AML/CFT)
Compliance
Guidelines, 2011.
The Guidelines are structured in two,
Part A made up of the new AML/CFT
Directives while Part B provides
guidance on KYC.(NIC/FIC 2011)

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GHANAIAN AML/CFT COMPLIANCE LAWS

AML (AMENDMENT),
2014 (ACT 874)

The recently passed Anti-Money Laundering (Amendment)

Act, 2014 was passed mainly:
To clarify some inconsistencies and conflicts between the
AntiMoney Laundering Act, 2008 (Act 749) and
Article 19(11) of the 1992 Constitution.
To expand the countrys definition on Money Laundering
since the definition in Act 749 is said to be too narrow,
inhibiting the work of the Attorney-Generals Department
to enforce actions relating to Money Laundering at the
courts.

To enable the countrys Financial Intelligence

Centre (FIC),
have
the requisite framework to join the
prestigious Egmont Group of Financial Intelligence
Units(FIUs). The Egmont Group is an
informal network
of Financial Intelligence Units for the
stimulation of
international co-operation against Money Laundering.
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GHANAIAN AML/CFT COMPLIANCE LAWS

AML (AMENDMENT),
2014 (ACT 874)

Prescribes administrative sanctions for

violations

Prescribes sanctions of up to 60,000

Ghana Cedis and 10 years
imprisonment for violations of AML/CFT
laws.

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