Bank of Ghana cautions against money laundering: Do not authorize a third party to use your bank account for fund transfer

Third party fund transfers through your bank account are prohibited, Bank of Ghana advises against money laundering. Money laundering is a serious criminal offence that involves disguising the origins of illegally obtained money. The Bank of Ghana is committed to preventing such illegal activities and ensuring the integrity of the financial system.

The Bank of Ghana (BoG) has warned the general public not to allow a third party to receive or transfer funds through their bank account, as they may be aiding money laundering or terrorist financing if they do that. The central bank said that when a person provides his or her legitimately or illegitimately acquired funds or assets for terrorist activities or organizations the person will be financing terrorism.

The central bank said financing terrorism is a crime and is punishable by law; therefore, people should be careful they do not become conduits for such activities. The Bank of Ghana said these in its Financial Literacy document.

“Financing terrorism is a crime and is punishable by law. When you provide your legitimately or illegitimately acquired funds or assets for terrorist activities or organizations you are financing terrorism. Be careful that you do not become a conduit for such activities.

“Sudden, unexplained wealth could be a result of money laundering, and you could be prosecuted. Be sure to be in a position to satisfactorily explain your source of wealth.

“Don’t allow a third party to receive or transfer funds through your bank account. You could be aiding money laundering or terrorist financing, which is a crime punishable by law,” it said.

The BoG also explained how money laundering is done and how people can face the consequences of engaging in such illegal acts.

The Bank explained that money laundering is the process whereby money obtained from unlawful activities such as drug trafficking and corruption is legitimized through complex transactions and processes called ‘cleaning’ to hide its illegal source.

It went ahead to caution that such activities are punishable by law.

“Beware, both the underlying illegal activities that produce the ‘dirty’ money that has to be ‘washed or cleaned’ and money laundering, which seeks to legitimize the proceeds of the illegal activities, are punishable by law.

“Money laundering and terrorist financing can have potentially devastating economic, security, and social consequences for nations, businesses, and individuals.

Terrorist financing includes the provision of funds and financial support to individuals, state actors, and non-state actors for the purpose of extremist acts and the promotion of terrorism and terrorist organizations,” the Bank said.

The BoG went ahead to explain the role that the various banks and financial institutions play in fighting money laundering.

In order to control money laundering and terrorist financing, it said, “You may be required to disclose and prove the source of funds used to undertake transactions at all Bank of Ghana licensed and regulated financial institutions.”

Sources: infographic on money laundering