The police have detained 76 persons for allegedly unlawfully dealing foreign currency (Forex), particularly US dollars, in parts of Accra.
A special squad from the Ghana Police Service (GPS) and the Bank of Ghana (BoG) swooped on and detained the individuals last Tuesday for illegally trading and purchasing the CFA Franc, euro, and British pound, among other currencies, in Accra’s Central Business District (CBD).
They were apprehended in Rawlings Park, Tudu, Cowlane, the Kwame Nkrumah Circle, Kinbu, Timber Market, and Lava and have since been placed in police custody to help with the investigation and prosecution.
Special team
The special team, comprised of officials from the BoG’s Foreign Exchange Bureau Office and police officers, proceeded from one location to another, detaining the operators involved in the practice.
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The Foreign Exchange Act, 2006 (Act 723) governs forex trading and authorizes the BoG to issue licenses to interested institutions and individuals.
According to the legislation, anybody who engages in the business of dealing in foreign exchange without a license commits an offense and is subject to summary conviction to a fine of up to 700 penalty units or a period of imprisonment of up to 18 months, or both.
Nationwide exercise
Adjoa Konadu-Tortor, the Head of the BoG Foreign Exchange Bureau Office, told the media following the exercise that the majority of individuals detained were foreigners involved in the illegal crime.
According to Mrs Konadu-Tortor, the exercise was part of a special operation conducted by the central bank in collaboration with the police to clear the system of illegal FX dealers, sometimes known as “black market operators.”
She stated that it was in accordance with attempts to rid the forex market of illegal operators by requiring that only licensed operators deal in foreign currency.
She indicated that similar sweeps will be conducted around the country, with a specific emphasis on areas considered to be hotbeds for illegal currency trading.
The exercise, according to the head of the central bank’s Foreign Exchange Bureau Office, was long overdue, especially considering the “havoc” it brought to the economy and the local currency.
Meanwhile, the Bank of Ghana’s Financial Stability Department stated in a statement that the drive on illegal forex traders will be supplemented by additional steps to assist clean up the forex market.
It stated that the measures included increased public sensitization and media engagements to educate the general public on forex rules and regulations, as well as enforcement of compliance from licensed foreign exchange bureaus, particularly with the taking of customer identification (Ghana card) and issuance of electronic receipt for every forex transaction.
SOURCE: GRAPHICONLINE
