By Philip Antoh
The Chief Executive Officer of the Financial Intelligence Centre (FIC), Kwadwo Twum-Boafo, has raised condemned the growing use of mobile money platforms for illegal financial activities in Ghana.
He pointed out that stricter financial regulations in the banking sector have made it harder for people to conduct suspicious transactions through traditional banks, prompting many to turn to mobile money services.
“The 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.
In fact, as I know, in Ghana today, you cannot give a third party a cheque for more than GHC5,000,” he said.
Mr. Twum-Boafo also mentioned that foreign currency transactions are now being monitored more closely.
“Currently, you cannot even transfer foreign currency to someone without certain checks on that person. They are very strict,” he added.
He warned that the semi-anonymous and virtual nature of mobile money systems makes them appealing to money launderers.
“The platform that many of them use is the mobile money platform, which is essentially virtual. Monitoring virtual assets is more challenging,” he noted.
In an interview with TV3, the FIC leader stated that the Centre can freeze mobile money accounts associated with suspicious transactions and called on telecommunication companies to enhance their compliance with anti-money laundering regulations.
“We can freeze mobile money accounts. They (Telcos) are required to comply, but their full compliance is a different matter altogether,” he commented.
Mr. Twum-Boafo praised the banking sector for its strict adherence to financial regulations but stressed the need for telecommunication companies to improve.
“I mentioned the proactive approach we need, and they (Telcos) in particular are not as compliant as I would prefer. The banks are compliant, but Telcos, no,” he said.