BoG reiterate commitment to ensuring conducive banking environment
The Governor of Bank of Ghana, Dr. Ernest Addison, has indicated that the Bank of Ghana is committed to creating a conducive banking environment for the banking sector.
“The Bank of Ghana will continue to create an enabling environment within which banks can efficiently carry out their role of financial intermediation to accelerate economic growth and development,” the BoG Governor said.
He made the statement during the commissioning of the Republic Court Building, Republic Bank’s head office at the Ridge roundabout in Accra.
According to the Governor, the move by Republic Bank attest to the bank’s successful expansion strategy adding that the Bank of Ghana applauds the continuous growth and development of the bank.
The Republic Bank Ghana acquired HFC Ghana as part of the Bank’s international expansion strategy in 2013.
The acquisition was the largest single investment by a diaspora company back into Africa and it was seen to signify the adding of value by the African diaspora to the motherland.
“Increasingly, the banking sector has witnessed the increased usage of online banking as customers resort to branchless banking for transactions. Banks have also been compelled to increase investments and upgrades of digital platforms to remain competitive,” he indicated.
He continued, “In line with the objective of customer centralism, we expect that financial digitization will shape the banking business to compete with the fin-techs in the payment systems space. Hence, there is the need for adoption and diffusion of technology in every sphere of banking sector operations.”
Dr. Addison pointed out that the Bank has been instrumental in the development of the mortgage industry and continues to play a leading role in the mortgage sector of the country.
He reminded the management team of the vision of the Holding Company to use the acquisition in Ghana as a platform to launch their international expansion strategy in Africa.
“Ghana currently houses the headquarters of the Africa Continental Free Trade Area, and it provides a good opportunity to see the Republic Bank venture into other countries on the continent. The Bank of Ghana will continue to create an enabling environment within which banks can efficiently carry out their role of financial inter-mediation to accelerate economic growth and development,” he added.
Meanwhile, the Bank of Ghana (BoG) has announced that in accordance with its objective to ensuring safety financial system, the National Identification Card also known as Ghana Card will be the only identification card for all financial transactions from July 2022.
According to BoG, the public is to note that no other form of identification will be accepted for financial transactions after the effective date.
“In furtherance of its objective of ensuring the safety of the financial system, Bank of Ghana pursuant to Regulation 7 of the National Identity Register, 2012 (L.I. 2111), hereby directs that with effect from 1st July, 2022, the Ghana Card shall be the only identification card that will be to undertake transactions at all Bank of Ghana licensed and regulated financial institutions,” the Secretary to BoG, Sandra Thompson disclosed.
These Financial institutions include Banks, Specialized Deposit-Taking Institutions, Non-Deposit-Taking Financial Institutions, Payment Service Providers and Dedicated Electronic Money Issuers and Forex Bureaus and Credit Reference Bureaus.
The BoG also indicated that in line with the notice, Section 30 of the Anti-Money Laundering Act, 2020 (Act 1044) and Regulation 12 of the Anti-Money Laundering Regulations, 2011 (L.I. 1987), all financial institutions shall take steps to update customer records with the Ghana Card.
“Customers of Bank of Ghana regulated financial institutions are therefore advised to update their records with their respective financial institutions with the Ghana Card in line with this Notice.
“For KYC purposes, the National Identification Authority verification transaction platform will be integrated into the Bank of Ghana’s financial monitoring platform,” she added.
According to her, this is to ensure that all financial transactions performed within the ecosystem are linked to one identity and information, and unique codes for the transactions shared with the Bank of Ghana (BoG) to facilitate the identification of initiators or beneficiaries for track and trace purposes.
This shall also include but not limited to transactions by banks, Non-bank Financial Institutions and Mobile Money Operators (MMOs).