Bank of Ghana Suspends UBA Ghana’s Foreign Exchange Trading Licence
Bank of Ghana Suspends UBA Forex Licence – In a significant regulatory move, the Bank of Ghana (BoG) has suspended the foreign exchange trading licence of United Bank for Africa (UBA) Ghana.
This decisive action, effective September 18, 2025, will last for one month. Consequently, the bank is immediately prohibited from conducting all foreign exchange trading activities. Importantly, the central bank implemented this suspension under the authority of Section 11(2) of the Foreign Exchange Act, 2006 (Act 723).
Bank of Ghana Suspends UBA License – Understanding the Regulatory Framework
Firstly, it is crucial to understand the legal foundation for this suspension. The Foreign Exchange Act, 2006 (Act 723) provides the Bank of Ghana with its supervisory and enforcement powers. Specifically, Section 11(2) grants the BoG the authority to suspend or revoke a licence if a institution fails to comply with the Act or any associated regulations. Therefore, this action signals a serious breach of these established rules, though the BoG has not yet publicly detailed its specific findings.
Potential Reasons Behind the Suspension
While the central bank’s full report is awaited, such suspensions typically result from significant compliance failures. For instance, common infractions include deficiencies in reporting foreign exchange transactions, failure to adhere to Anti-Money Laundering (AML) protocols, or engaging in practices that undermine market integrity.
Furthermore, the BoG has recently intensified its efforts to clamp down on illegal forex operations and stabilize the local currency. As a result, this suspension serves as a stark reminder to all financial institutions about the critical importance of strict regulatory adherence.
Immediate Implications for UBA Ghana and Its Clients
The immediate impact on UBA Ghana is substantial. For the next month, the bank cannot buy or sell foreign currencies on behalf of its clients.
Customers needing international wire transfers, travel forex, or currency exchange must now use other licensed banks. The suspension only affects forex trading. All other services—like deposits, withdrawals, and loans—will operate normally.
UBA Ghana must now fix the compliance issues the regulator found. The bank must prove to the BoG that it has implemented corrective measures. Only then can it reinstate its licence after the one-month period.
A Broader Message to the Financial Sector
Beyond the specific case of UBA, this suspension sends a powerful message to the entire financial industry. The Bank of Ghana is demonstrating a zero-tolerance policy towards violations that can destabilize the foreign exchange market. Proactive regulation is essential for maintaining economic stability and protecting consumer interests. Thus, other institutions are likely to review their own internal controls and compliance procedures to avoid similar punitive measures.
Looking Ahead : Compliance and Stability
In conclusion, the one-month suspension of UBA Ghana’s forex licence is a definitive enforcement action rooted in the Bank of Ghana’s regulatory mandate. While disruptive for the bank in the short term, this move underscores the central bank’s commitment to enforcing the rules that govern the financial sector. For the health of Ghana’s economy, ensuring a transparent, fair, and stable foreign exchange market is paramount. Finally, this event highlights the ongoing need for all market participants to prioritize strict compliance above all else.
Bank of Ghana Suspends UBA Forex Licence
