No Ghana Card, no foreign exchange transaction —Government publicizes new measures in anti-money laundering pressure – Life Pulse Daily

Introduction

In a bold move to strengthen financial security and combat financial crimes, the Ghanaian government has introduced new regulations that make the Ghana Card mandatory for all foreign exchange transactions. Effective September 2025, the Bank of Ghana (BoG) and the Financial Intelligence Centre (FIC) have implemented strict anti-money laundering (AML) measures that require foreign exchange bureaus to verify customer identities using the Ghana Card before processing any transactions. This initiative is part of a broader strategy to enhance regulatory oversight, reduce fraud, and align Ghana’s financial system with international standards.

The new rules are designed to close existing loopholes that have made foreign exchange bureaus vulnerable to money laundering, terrorism financing, and proliferation financing. By mandating the use of the Ghana Card—a biometric national identity card—authorities aim to create a more transparent and secure financial environment. This article explores the key points, background, analysis, and practical implications of these new measures, providing readers with a comprehensive understanding of what this means for individuals, businesses, and the broader economy.

Key Points

Background

The Evolution of the Ghana Card

The Ghana Card, introduced by the National Identification Authority (NIA), is a biometric national identity card that has become central to Ghana’s digital transformation. Since its rollout, the card has been integrated into various sectors, including banking, telecommunications, healthcare, and government services. Its adoption has significantly reduced identity fraud and improved service delivery.

Over the years, the government has made the Ghana Card a prerequisite for accessing essential services such as passport applications, driver’s license registration, vehicle insurance, and business registration. This latest move extends its use to foreign exchange transactions, reinforcing its role as the cornerstone of national identity verification.

Why Focus on Foreign Exchange Bureaus?

Foreign exchange bureaus have historically been vulnerable to financial crimes due to the high volume of cash transactions and the ease with which large sums can be moved across borders. These institutions often serve as entry points for illicit funds, making them a focal point for anti-money laundering efforts. The new guidelines target these vulnerabilities by introducing robust customer due diligence (CDD) procedures.

Analysis

Strengthening Anti-Money Laundering Frameworks

The new AML/CFT/CPF guidelines represent a significant step forward in Ghana’s fight against financial crime. By requiring foreign exchange bureaus to verify customer identities using the Ghana Card, regulators can create a more transparent transaction trail. This makes it harder for criminals to exploit the system for money laundering or terrorism financing.

The integration of biometric verification for transactions of $10,000 or more adds an additional layer of security. Biometric data is nearly impossible to forge, making it an effective tool for identity verification. This measure aligns with international best practices recommended by organizations such as the Financial Action Task Force (FATF).

Impact on Financial Inclusion

While the new regulations enhance security, they also raise questions about financial inclusion. Individuals without a Ghana Card may face challenges accessing foreign exchange services, potentially excluding vulnerable populations. However, the government has made efforts to ensure widespread card distribution, including mobile registration units and extended registration periods.

Regulators emphasize that the long-term benefits of reduced fraud and increased financial transparency will outweigh short-term challenges. By creating a more secure financial environment, the measures are expected to attract foreign investment and strengthen Ghana’s position in the global economy.

Compliance and Enforcement

Foreign exchange bureaus are required to display notices informing customers of the new requirements. Failure to comply with the guidelines may result in penalties, including fines and license suspension. The BoG and FIC will conduct regular inspections to ensure adherence to the regulations.

The guidelines also mandate enhanced monitoring of transactions involving Politically Exposed Persons (PEPs), who are considered higher risk due to their positions of power. Any suspicious transactions must be reported to the authorities within 24 hours.

Practical Advice

For Individuals

If you engage in foreign exchange transactions, ensure you have a valid Ghana Card. If you don’t have one, visit the nearest NIA office or registration center to apply. Keep your card safe and avoid sharing your biometric data with unauthorized parties. When conducting transactions, be prepared to present your card and undergo biometric verification if required.

For Businesses

Foreign exchange bureau operators must update their systems to accommodate the new requirements. Invest in biometric verification technology and train staff on the new procedures. Display the required notices prominently and ensure all transactions are properly documented. Regularly review your compliance procedures to avoid penalties.

For Financial Institutions

Banks and other financial institutions should collaborate with foreign exchange bureaus to ensure seamless integration of the new guidelines. Share best practices and support efforts to enhance customer due diligence. Consider offering educational resources to help customers understand the new requirements.

FAQ

Conclusion

The introduction of mandatory Ghana Card requirements for foreign exchange transactions marks a significant milestone in Ghana’s efforts to combat financial crime and enhance regulatory oversight. By leveraging biometric technology and robust customer due diligence procedures, the government is creating a more secure and transparent financial environment.

While the new measures may require adjustments for individuals and businesses, their long-term benefits are clear. Reduced fraud, increased financial transparency, and enhanced international credibility will strengthen Ghana’s economy and improve the lives of its citizens. As the world becomes increasingly interconnected, such proactive measures are essential for safeguarding national and global financial systems.

The success of this initiative will depend on collaboration between regulators, financial institutions, and the public. By working together to implement and adhere to these guidelines, Ghana can set an example for effective anti-money laundering practices in the region and beyond.