SEC, BoG not doing enough to deal with money ‘doublers’ – Malm-Hesse

The Bank of Ghana (BoG) and the Security and Exchange Commission (SEC) have been asked to scale up efforts in dealing with the issue of money doubling in the country.

Private Legal Practitioner, Christian Malm-Hesse said this issue is gradually growing in the country, a situation, he believes threatens the financial sector of the local economy.

To that end, he said, the regulators must up their game in ensuring that this problem is nipped in the bud.

Speaking on the issue of money doubling in an interview with TV3’s Johnnie Hughes on the New Day show Monday February 8, Mr Malm-Hesse noted that the BoG, the SEC and the Ghana Revenue Authority (GRA) are not doing enough to tackle the problem.

“It is becoming a growing canker and if authorities do not act will become something else,” he said. He added “The enforcers are not dosing enough to deal with these people,” said.

Asked whether the BoG and the SEC are doing enough to deal with the problem, he said “No they are not doing enough.”

Last year, the BoG notified all media outlets not to allow the broadcast of illegal money doubling and credit card loading schemes on their platforms.

The central bank said this is because no entity or individual has been licensed to engage in that business in the country.

The BoG in a statement explained that “Money Doubling”, “Card Loading” and “Credit Card Loading Systems” amount to deposit-taking, under the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930) and under Section 4 of Act 930 only entities licensed by the Bank may carry out deposit-taking business.

“By this notice, the Bank of Ghana informs the general public that the Bank has not licensed any entities or individuals engaged in ‘Money Doubling’, Card Loading’ and ‘Credit Card Loading Systems’. The said individuals and entities in question, commit an offence and will be required to return all funds received,” the BoG statement said.

“Members of the public are reminded to place deposits only with institutions licensed by the Bank of Ghana, in order that they may be accorded the protection available under the banking laws.

“The Bank of Ghana wishes to notify all media outlets including radio, television and online channels NOT to permit the advertisement of ‘Money Doubling’ and ‘Card Loading’ or ‘Credit Card Loading Systems’ on their platforms. The media is encouraged to verify the licensing status of such entities with Bank of Ghana, before advertising their products and services. The general public is encouraged not to engage in such activities and to report such illegal activities to the Bank of Ghana…”

Regarding the growing cryptocurrency trade in the country, Mr Malm-Hesse called on the Ghana Revenue Authority (GRA) to liaise with the BoG and the SEC to regulate the sector properly.

Cryptocurrency is a digital asset designed to work as a medium of exchange wherein individual coin ownership records are stored in a ledger existing in a form of computerized database using strong cryptography to secure transaction records, to control the creation of additional coins.

Mr Malm-Hesse called for the enactment of legislations to control this particular trade properly in order to avert potential fraudulent activities with this.

By Laud Nartey|3news.com|Ghana