Prevent Third Parties from Sending or Receiving Funds via Your Bank Account – BoG warns

The Bank of Ghana (BoG) Issues Warning Against Allowing Third Party Transactions in Bank Accounts

In a recent advisory, the Bank of Ghana (BoG) cautioned the public against permitting third parties to send or receive funds through their bank accounts. The bank emphasized that such actions could inadvertently contribute to money laundering or terrorist financing, both of which are serious offenses.

According to the central bank, individuals who provide their funds, whether acquired legitimately or illegitimately, to support terrorist activities or organizations are essentially financing terrorism. This, the BoG stresses, is a criminal act punishable by law, urging the public to exercise vigilance to avoid becoming conduits for illicit activities.

The warning was underscored in the Bank of Ghana’s Financial Literacy document, which also highlights the potential consequences of engaging in money laundering. The document explains that money laundering involves the process of legitimizing funds obtained through unlawful means, such as drug trafficking or corruption, through complex transactions aimed at concealing their illegal origins. Individuals involved in such activities can face legal repercussions, as both the initial illegal activities and the laundering process are punishable offenses.

Moreover, the BoG outlined the severe economic, security, and social ramifications associated with money laundering and terrorist financing, emphasizing the importance of combating these illicit practices. Terrorist financing, in particular, involves providing financial support to individuals, states, or non-state actors for extremist acts or the promotion of terrorism and terrorist organizations.

In its efforts to combat money laundering and terrorist financing, the BoG detailed the role of banks and financial institutions. It emphasized the necessity for individuals to disclose and substantiate the sources of funds used in transactions conducted at licensed and regulated financial institutions under the purview of the Bank of Ghana.

In conclusion, the Bank of Ghana urges the public to exercise caution and comply with regulatory requirements to mitigate the risks associated with money laundering and terrorist financing, thereby contributing to the overall integrity of the financial system.