Minister for Finance, Ken Ofori-Atta, has announced that Ghana is set to apply to become a member of the Financial Action Task Force (FATF).
The announcement made by the Finance Minister follows Ghana’s removal from the Anti-Money Laundering list of FATF and the European Union (EU).
Making the disclosure at a press briefing on Wednesday, June 30, 2021, the Finance Minister asserted that a successful application and subsequent approval by FATF, will see Ghana become the second African country member of the organisation.
South Africa is the first and currently the sole African country which is a member of FATF.
The Financial Action Task Force (FATF), is an intergovernmental organisation founded in 1989 on the initiative of the Group of Seven (G7) to develop policies to combat money laundering and terrorism financing.
The objectives of FATF are to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system.
FATF is a “policy-making body” that works to generate the necessary political will to bring about national legislative and regulatory reforms in these areas.
Background
Ghana was last year added to a list of 12 countries with weak or deficiencies in Anti Money Laundering and Terrorism financing laws by the EU and FATF.
The list published on May 7, 2020, by the EU also included the Bahamas, Barbados, Botswana, Cambodia, Jamaica, Mauritius, Mongolia, Myanmar, Nicaragua, Panama and Zimbabwe.
According to the EU and FATF, the weakness identified in the listed countries possess a serious risk to their financial system hence the action.
But on June 25, 2021, Ghana’s removal from the list was announced by the Financial Action Task Force (FATF).
FATF in a statement said it welcomes the significant progress by Ghana in improving its AML/CFT regime, asserting the country has strengthened the effectiveness of its AML/CFT regime.
Adding Ghana has adequately addressed all related technical deficiencies to meet the commitments in its action plan regarding the strategic deficiencies that the FATF identified in October 2018.
