Kwadwo Twum-Boafo, the Chief Executive Officer of the Financial Intelligence Centre (FIC), has raised concerns about the increasing use of mobile money platforms for illegal financial activities. He noted that stricter financial regulations in the banking sector have made it more challenging for individuals to conduct suspicious transactions through traditional banks, leading them to exploit mobile money services instead.
“The banks have tightened their regulations. The Fintech and Innovations Department of the Bank of Ghana, along with the Financial Stability Department, is very strict when it comes to financial transactions. For instance, in Ghana today, you cannot issue a third party a cheque for more than GHC 5,000,” he explained.
Mr. Twum-Boafo also pointed out that foreign currency transfers are now closely monitored. “Currently, you cannot transfer foreign currency to an individual without going through specific checks on that person. So, the regulations are indeed very strict,” he added.
He warned that the relative anonymity and virtual nature of mobile money systems make them particularly appealing to money launderers. “The platform most of them use is the mobile money platform, which is essentially virtual. Monitoring virtual assets is considerably more difficult,” he stated.
The FIC boss speaking on Hot Issues on TV3 on Sunday, November 9, Mr Twum Boafo added that the Centre has the capacity to freeze mobile money accounts linked to suspicious activity. He urged telecommunication companies to enhance their compliance levels in line 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 banks for their strict adherence to financial regulations but called for greater compliance from telecommunication companies. “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.
Source: William Narh
