The Bank of Ghana (BoG) has directed commercial banks and other financial institutions to strengthen their fraud management systems and ensure that fraud control functions operate independently and effectively.
The central bank has specifically called on banks to give their fraud management units direct and unrestricted access to managing directors and chief executive officers (CEOs) to enable them to respond quickly to suspected fraudulent activities.
BoG Calls for Stronger Fraud Risk Management
Bank of Ghana Governor Dr Johnson Asiama said the central bank had received concerns from the Ghana Association of Banks (GAB) regarding the different ways banks currently structure and position their fraud management functions.
Speaking at a meeting with heads of banks, Dr Asiama described banking sector fraud as a significant financial risk that requires stronger attention from financial institutions.
He stressed the need for banks to improve their internal controls and establish effective systems capable of identifying and addressing fraud risks before they result in financial losses.
Banks Asked to Strengthen Fraud Prevention
The BoG Governor urged banks to adopt comprehensive fraud risk management policies and controls designed to prevent, detect and deter fraudulent activities.
He said stronger fraud management structures would help improve banking security, protect customers’ funds and strengthen confidence in Ghana’s financial sector.
The directive forms part of the Bank of Ghana’s broader efforts to enhance financial sector stability, corporate governance and risk management within the banking industry.
Banks are therefore expected to review their existing fraud management arrangements and ensure that their fraud units have the authority, independence and access required to perform their functions effectively.
Source: newsthemegh.com