Tuesday, 28 May

Money Laundering: Don’t allow third parties to receive funds with your accounts – BoG cautions public

Business
Money Laundering

The Bank of Ghana (BoG) has issued a stern warning to the general public, cautioning against allowing third parties to utilise their bank accounts for receiving or transferring funds.

Such actions, the central bank emphasised, could inadvertently facilitate money laundering or terrorist financing activities, constituting serious crimes punishable by law.

In its Financial Literacy document, the BoG underscored the gravity of financing terrorism, highlighting that individuals who provide their funds—whether acquired legitimately or illegitimately—for terrorist activities or organisations are directly involved in the criminal act of financing terrorism. The document urged vigilance to avoid unwittingly becoming conduits for such illegal activities.

Additionally, the BoG outlined the process and consequences of money laundering, describing it as the method through which money obtained from unlawful sources such as drug trafficking or corruption is laundered through intricate transactions to conceal its illicit origins. The central bank stressed that both the underlying illegal activities generating "dirty" money and the laundering process itself are punishable offenses.

Furthermore, the BoG emphasised the significant economic, security, and social ramifications of money laundering and terrorist financing for nations, businesses, and individuals.

Terrorist financing, it noted, encompasses providing financial support to individuals, state or non-state actors for extremist acts or promoting terrorism and terrorist organizations.

To combat these illicit activities, the BoG elucidated the crucial role of banks and financial institutions in preventing money laundering. It outlined measures such as disclosing and substantiating the source of funds used in transactions, mandatory requirements applicable across all Bank of Ghana licensed and regulated financial entities.

 

Source: Classfmonline.com