Chief Executive Officer of the Financial Intelligence Centre (FIC), Kwadwo Twum-Boafo, has expressed concern over the increasing use of mobile money platforms for unlawful financial activities in Ghana.
He explained that tighter financial regulations within the banking sector have made it difficult for individuals to carry out suspicious transactions through traditional banks, leading many to shift toward 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. Indeed, what I know, in Ghana today, you can’t give a third party a cheque of more than GHC5,000,” he stated.
Mr. Twum-Boafo further noted that foreign currency transactions are now under closer scrutiny. “As we speak, you can’t even transfer foreign currency to an individual without certain checks on the individual. So, they are very strict,” he added.
He cautioned that the semi-anonymous and virtual nature of mobile money systems makes them an attractive option for 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 observed.
Speaking in an interview, the FIC boss indicated that the Centre has the capacity to freeze mobile money accounts linked to suspicious transactions and urged telecommunication companies to step up their 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.
Mr. Twum-Boafo commended the banking sector for its strict adherence to financial regulations but emphasized the need for telecommunication companies to do more. “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 said.