Eliminating illegal forex operators is good but… – Joe Jackson

Chief Operations Officer at the Dalex Finance, Mr Joe Jackson has commended the Bank of Ghana for the action taken against illegal foreign exchange operators in the country.

He however said the central bank should not expect this action to affect the price of United States Dollars in view of the drop of the local currency, the Cedi.

The Cedi depreciation is simply an issue of supply against demand, he said.

“Eliminating illegal forex operators is a good thing but I hope that the powers that be do not expect this action to affect the price of USD. The Cedi depreciation is simply an issue of supply vs demand,” he tweeted after the BoG, together with the Ghana Police Service, on Tuesday  20th September 2022, conducted a special operation on foreign exchange (forex) parallel market operators (otherwise known as black market operators) at identified hot spots within  Business District (Rawlings Park, Tudu, Cowlane, Circle, Kimbu, Timber Market and Lava) and throughout the country.

In all about 76perpetrators were apprehended by the police for prosecution. The special operation will continue nationwide.

The purpose of the operation was to clamp down on individuals and entities engaging in the business of buying and selling foreign exchange without a licence from Bank of Ghana in violation of Ghana’s foreign exchange laws and regulations.

Speaking to Journalists after exercise, the Head of the Foreign Exchange  Bureau Examinations Office, at the Bank of Ghana, Adjoa Konadu Torto, indicated that the exercise will continue in other parts of the country in the coming days.

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She maintained that members of the public who patronise the activities of ‘Black Market” operators are equally guilty before the law.

“The over 76 perpetrators were apprehended by the police for prosecution. The special operation will continue nationwide”.

“The purpose of the operation was to clamp down on individuals and entities engaging in the business of buying and selling foreign exchange without a licence from Bank of Ghana in violation of Ghana’s foreign Exchange Laws and regulations”, she explained.

She cautioned the general public to desist from engaging in illegal foreign exchange business without a licence.

“The general public must always trade with the Bank of Ghana licensed foreign exchange (forex) bureaux. Accordingly, the Anti-Money Laundering ACT, 2020 (Act 1044) as amended instructs all bureau customers to insist on their electronic receipts by providing the acceptable valid ID, the Ghana Card, to cover the buying and selling of all foreign currencies”, she added.

VIOLATION OF FOREIGN EXCHANGE ACT & REGULATION

  1. Section 3. (1) of the Foreign Exchange Act, 2006 (Act 723) states that “A person shall not engage in the business of dealing in foreign exchange without a licence” and Section 29 (1a) “A person who engages in the business of dealing in foreign exchange without a licence commits an offence and is liable, on summary conviction, to a fine of not more than seven hundred penalty units or a term of imprisonment of not more than eighteen months, or both.”
  2. Also Section 1 (i & ii) of the Revised Forex Bureau Regulations, 2003 (BOG NOTICE NO. BG/GOV/SEC/2003/2) states that “No person shall carry on any forex bureau business unless he/she is in possession of a valid forex bureau licence. A person who contravenes or fails to comply shall be guilty of an offence and shall be dealt with in accordance with the law.
  3. This special operation was part of the Bank’s overall strategy to sanitize the foreign exchange market. Other measures being put in place include enforcement of compliance from licensed foreign exchange bureaux particularly with the taking of customer identification (Ghana card) and issuance of electronic receipt for every forex transaction; intensified public sensitization and media engagements to educate the general public on forex rules and regulations, including the need to avoid the black market; etc.
  4. The Bank uses this opportunity to thank our law enforcement agencies for a successful operation and look forward to more collaboration to bring the parallel market operations to the barest minimum.
  5. The Bank cautions the general public to desist from engaging in foreign exchange business without a licence. Members of the public who patronizse the activities of black market operators are equally guilty before the law.
  6. The general public must always trade with the Bank of Ghana licensed foreign exchange (forex) bureaux. Accordingly, the Anti-Money Laudering ACT, 2020 (Act1044) as amended instructs all bureau customers to insist on their electronic receipts by providing the acceptable valid ID, the Ghana Card, to cover the buying and selling of all foreign currencies.
  7. The Bank also takes this opportunity to remind the general public that reference to Bank of Ghana Notice Number BG BG/GOV/SEC/2019/07 pricing, advertising, paying or receiving payment for goods and services in foreign currency in Ghana is an offence punishable by law. Such violations are punishable, on summary conviction, by a fine of up to seven hundred (700) penalty units or a prison term of not more than eighteen (18) months, or both. The sole legal tender in Ghana is the Ghana Cedi and Ghana Pesewa.
  8. Members of the public are encouraged to report all foreign exchange violations  to:
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By Laud Nartey|3news.com|Ghana