The Chief Executive Officer of the Financial Intelligence Centre (FIC), Kwadwo Twum-Boafo, has raised concerns over the growing use of mobile money p
The Chief Executive Officer of the Financial Intelligence Centre (FIC), Kwadwo Twum-Boafo, has raised concerns over the growing use of mobile money platforms for unlawful financial activities in Ghana.
He explained that stricter banking regulations have made it harder for individuals to conduct suspicious transactions through traditional banks, prompting many to turn to mobile money services.
“The banks have tightened their regulations. The Fintech and Innovations Department of the Bank of Ghana and the Financial Stability Department are very strict on financial transactions. Today in Ghana, you can’t give a third party a cheque of more than GHC5,000,” he said.
Mr. Twum-Boafo also noted that foreign currency transactions are under increased scrutiny. “As we speak, you can’t even transfer foreign currency to an individual without certain checks on the person. The regulations are very strict,” he added.
He warned that the semi-anonymous and virtual nature of mobile money makes it an attractive tool for money launderers. “Most of them use the mobile money platform, which is largely virtual. As for virtual assets, monitoring is even more difficult,” he said.
Speaking to TV3, the FIC boss confirmed that the Centre has the power to freeze mobile money accounts linked to suspicious transactions and urged telecommunication companies to strengthen their compliance with anti-money laundering regulations.
“We are able to freeze mobile money accounts. Telcos are enjoined to be compliant, but full compliance—that’s another discussion,” he noted.
While commending banks for adhering strictly to financial regulations, Mr. Twum-Boafo stressed the need for telecommunication companies to do more. “I spoke about the front-foot approach we need, and Telcos, in particular, are not as compliant as I would like. Banks are, but Telcos, no,” he said.