FIC boss raises alarm over rising mobile money-linked financial crimes in Ghana

Chief Executive Officer of the Financial Intelligence Centre (FIC), Kwadwo Twum-Boafo, has voiced serious concern over the growing trend of mobile money platforms being exploited for illicit financial activities in Ghana.

According to him, stricter banking regulations have made it increasingly difficult for individuals to conduct suspicious transactions through traditional banks, prompting many to turn to mobile money as an alternative.

“The banks have tightened their regulations. The Fintech and Innovations Department of the Bank of Ghana and the Financial Stability Department are very strict on financial transactions. In Ghana today, you can’t give a third party a cheque of more than GHC5,000,” he explained.

Mr. Twum-Boafo further disclosed that foreign currency transactions are now under intense scrutiny, limiting opportunities for misuse. “As we speak, you can’t even transfer foreign currency to an individual without certain checks on the individual. So, they are very strict,” he said.

However, he cautioned that the semi-anonymous and virtual nature of mobile money systems has made them a haven for money launderers and other financial criminals.

“The platform that most of them use will be the mobile money platform, which is more or less virtual. As for virtual assets, it is more difficult to monitor,” he observed.

Speaking to TV3, the FIC boss revealed that the Centre possesses the authority and tools to freeze mobile money accounts linked to suspicious activities, urging telecommunication companies to enhance their compliance with anti-money laundering regulations.

“We are able to freeze mobile money accounts. They (Telcos) are enjoined to be compliant, but them being fully compliant—that’s another discussion for another day,” he stated.

While commending the banking sector for its strong adherence to regulatory standards, Mr. Twum-Boafo called for greater vigilance from Telcos, stressing that their current level of compliance remains below expectations.

“I talked about the front-foot approach that we need, and they (Telcos) in particular are not in compliance as much as I would like. The banks are, but Telcos, no,” he concluded.