The Chief Executive Officer of the Financial Intelligence Centre (FIC), Kwadwo Twum-Boafo, has revealed that mobile money platforms have become the primary channel for illicit financial transactions in Ghana.
Speaking on TV3’s Hot Issues on Sunday, November 9, Mr Twum-Boafo attributed the shift to stricter regulations in the banking sector, which have made it difficult to conduct suspicious transactions through traditional banks.
“Banks have tightened their regulations. The Fintech and Innovations Department of the Bank of Ghana and the Financial Stability Department are very strict on financial transactions. Indeed, in Ghana today, you can’t give a third party a cheque of more than GH¢5,000,” he said.
He further noted that foreign currency transfers to individuals now undergo rigorous checks, adding, “You can’t even transfer foreign currency to an individual without certain checks on the individual. So, they are very strict.”
The FIC boss warned that the virtual and relatively anonymous nature of mobile money makes it attractive to money launderers.
“The platform that most of them use will be the mobile money platform, which is more or less virtual. As for virtual assets, it is more difficult to monitor,” he explained.
Mr Twum-Boafo assured that the FIC has the authority to freeze mobile money accounts linked to suspicious activities and urged telecommunication companies to strengthen compliance with anti-money laundering regulations.
“We are able to freeze mobile money accounts. They (Telcos) are enjoined to be compliant, but them being fully compliant, that’s another discussion for another day,” he remarked.
While commending banks for their adherence to regulations, he criticised telcos for falling short.
“I talked about the front-foot approach that we need, and they (Telcos) in particular are not in compliance as much as I would like. The banks are, but Telcos, no,” he stated.