Laud Nartey: Addressing Unethical Behaviour in Ghana’s Financial Sector – Why BoG and GAB Must Intensify Surveillance

Published on December 3, 2025 | By Laud Nartey, Business Correspondent, Life Pulse Daily

Introduction

Ethics form the backbone of trust in every professional domain, and the financial sector is no exception. In Ghana, recent disclosures by the Bank of Ghana (BoG) highlight a concerning surge in unethical behaviour among banking employees, threatening public confidence and foreign investment. Governor Dr. Johnson Asiama’s stark warnings, coupled with a 5% rise in reported fraud cases and a GH¢99 million exposure in 2024, underscore an urgent need for escalated regulatory vigilance. This article examines the scope of ethical breaches, evaluates current mitigation strategies, and proposes actionable solutions to safeguard Ghana’s financial ecosystem.

Analysis

Current Fraud Trends and Statistical Insights

The 2024 BoG Fraud Report reveals a disturbing trajectory: fraud cases increased by 5%, with financial losses escalating by 13%. Key offenses include forgery, document manipulation, and identity theft, particularly prevalent within Payment Service Providers (PSPs). Staff-involved fraud accounts for a significant share, exposing weaknesses in internal controls.

Impact on Public Trust and Investor Confidence

Erosion of ethical standards resonates beyond institutional walls. Local savers and international investors view rising fraud as a red flag, potentially deterring capital inflows. For instance, expatriate businesses evaluating Ghana as a investment destination may reassess risk profiles amid recurring scandals, stifling economic growth.

Regulatory Response and Strategic Partnerships

In response, BoG, the Chartered Institute of Bankers Ghana (CIB), and the Ghana Association of Banks (GAB) have forged a alliance to reinforce professional ethics. Their joint initiatives include:

• Development of the Ghana Banking Code of Ethics and Business Conduct
• Launch of mandatory E-learning Programmes promoting best practices
• Implementation of Sustainable Banking Principles and enhanced governance frameworks

Summary

Unethical practices within Ghana’s financial institutions pose systemic risks. While collaborative efforts have introduced vital codes and training, stricter enforcement—including public accountability mechanisms—is essential. Protecting consumer savings, maintaining macroeconomic stability, and attracting foreign capital hinges on an unwavering commitment to integrity.

Key Points

Practical Advice

For Financial Institutions

• Integrate Conflict-of-Interest Policies into onboarding and periodic training
• Establish dedicated Ethics Committees with cross-functional representation
• Deploy secure, anonymous Reporting Channels for staff and clients

For Regulators (BoG, GAB)

• Publish quarterly transparency reports detailing fraud case resolutions
• Mandate independent audits of internal control systems
• Introduce financial penalties tied to repeat offenses

For Consumers and Investors

• Verify institutional adherence to published Ethics Codes
• Utilize official BoG portals to report suspicious activity
• Diversify deposits across licensed institutions with strong compliance records

Points of Caution

Balancing Transparency and Due Process

While “naming and shaming” can deter misconduct, regulators must guarantee adherence to natural justice principles. Accused individuals should receive clear queries and fair opportunity to respond before public identification, preserving legal rights and preventing reputational harm.

Potential Unintended Consequences

• Overzealous publicity may incentivize underreporting due to fear of retaliation
• Resource-intensive monitoring could divert focus from core service delivery

Comparison with Global Best Practices

International Frameworks

Countries such as the United Kingdom and Singapore employ multi-tiered enforcement models, combining public offender registries, strict licensing renewal criteria, and robust whistleblower incentives. Ghana’s emerging framework can draw lessons from these systems while tailoring approaches to local governance realities.

Regional Context

West African peers like Nigeria and Kenya have implemented centralised fraud databases accessible to licensed operators. Such collaboration could enhance cross-border risk intelligence for Ghana’s regulators.

Legal Implications

Regulatory Enforcement Powers

BoG possesses statutory authority under the Bank of Ghana Act, 2002 (Act 612) to impose sanctions ranging from fines to license revocation. Recent amendments grant expanded powers for probing offshore transactions linked to domestic fraud.

Liability for Institutions

Financial institutions face potential civil lawsuits from defrauded clients and punitive actions from regulatory bodies. Case law in Ghana increasingly supports compensation claims under breach-of-duty statutes.

Conclusion

Combating unethical behaviour in Ghana’s financial sector demands collective action. Regulators, banks, and consumers must reinforce ethical cultures through clear policies, transparent enforcement, and unwavering accountability. By prioritizing integrity, Ghana can secure its financial stability, preserve public trust, and position itself as a reliable partner in global markets.

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