The Bank of Ghana (BoG) has cautioned individuals and organisations to always be in a position to satisfactorily explain their sources of wealth.
That, it is, said was because sudden unexplained wealth could be as a result of money laundering.
The BoG gave the advice in a social media post as part of a financial literacy initiative to sensitise the public about money laundering and terrorist financing.
The central bank described money laundering as a process whereby money obtained from unlawful activities such as drug trafficking and corruption is legitimised through complex transactions and processes called “cleaning” to hide its illegal source.
“Beware! Both the underlying illegal activities which produce the “dirty” money that has to be “washed or cleaned” and money laundering, which seeks to legitimise the proceeds of the illegal activities are punishable by law,” the post said.
Terrorist Financing on the other hand, it said, includes the provision of funds and financial support to individuals, state and non-state actors for the purpose of extremist acts and the promotion of terrorism and terrorist organisations.
It further explained that both activities can have potentially devastating economic, security and social consequences for nations, businesses, and individuals and as a result were in direct violation of Ghana’s laws.
Therefore, it said in order to control them, individuals and organisations may be required to disclose and prove the source of funds used to undertake transactions at all financial institutions licensed and regulated by the BoG.
“Financing of terrorism is a crime and punishable by law. When you provide your legitimately or illegitimately acquired funds/assets for terrorist activities or organizations, you are financing terrorism. Be careful you do not become a conduit for such activities,” it added.
The BoG also advised the individuals against allowing others to receive and or transfer funds through their bank accounts, pointing out that they could unknowingly be participating or aiding money laundering or terrorist financing, which are both punishable by law.
