The Ghana Gold Board (GoldBod) has implemented a new compliance framework that requires all Self-Financing Aggregators (SFAs) to seek regulatory clearance before engaging gold off-takers, in an effort to tighten regulation of Ghana’s gold trade and increase transparency throughout the industry.
In an effort to increase management of Ghana’s gold trade and promote transparency throughout the industry, the Ghana Gold Board (GoldBod) has implemented a new compliance framework that mandates that all Self-Financing Aggregators (SFAs) secure regulatory clearance prior to engaging gold off-takers.
Before any commercial connection can start, aggregators must submit the information of any potential off-taker for Know Your Customer (KYC), Anti-Money Laundering (AML), and financial due diligence, according to the new guidelines released by GoldBod’s Compliance Directorate.
Off-takers will only be able to transact if they pass GoldBod’s regulatory evaluation. Before trading with an authorised buyer, aggregators must obtain further approval from GoldBod, even after performing due diligence.
Additionally, a structured transaction procedure is introduced by the new framework.
In accordance with GoldBod’s trading policies, approved off takers will provide foreign currency purchase funds. GoldBod will then use the relevant Bank of Ghana reference rate to convert the funds into cedis and send the proceeds to the aggregator.
Before allowing exports, GoldBod will do assay and verification on the purchased gold.
Distancing itself from any commercial agreements between aggregators and buyers, the agency emphasised that its job is still solely administrative and regulatory.
According to GoldBod, it “is not and shall not be deemed to be a party to any financing arrangement, purchase agreement, sales contract, export contract, payment arrangement or any other commercial relationship” between approved off-takers and aggregators.
The regulator also made it clear that it does not guarantee any buyer’s financial situation, an off-taker’s payment obligations, aggregators’ supply pledges, or any transaction’s economic success.
The regulator also highlighted that it does not guarantee a buyer’s financial status, an off-taker’s payment obligations, aggregators’ supply pledges, or the commercial viability of any deal.
It cautioned that Self-Financing Aggregators must indemnify GoldBod against any claims resulting from any commercial and contractual agreements made with authorised off-takers.
Read Statement Below:
Source: newsthemegh.com