BoG warns public against illegal foreign investment scams

The Bank of Ghana has issued a warning to the public. It concerns unlicensed individuals and entities posing as foreign investors.

These fraudulent actors promise high returns to unsuspecting victims. This activity violates Ghana’s financial laws.

In a notice titled “Scam Alert – Illegal Foreign Investors in Ghana,” the Bank explained these schemes. They often involve unauthorized deposit-taking activities. Such activities are prohibited for any entity not licensed under Section 4 of the Banks and Specialized Deposit-Taking Institutions Act, 2016 (Act 930).

The Bank stated it has not licensed any individuals or entities for these schemes. Anyone participating in such ventures is committing an offense. Offenders could face penalties ranging from 500 to 100,000 penalty units. This is according to Section 53(3) of the Anti-Money Laundering Act, 2020 (Act 1044).

To protect themselves, the public should:
- Verify the licensing status of individuals or entities before depositing funds.
- Transact only with financial institutions licensed by the Bank of Ghana.
- Report suspicious activities to the Bank’s Financial Stability Department or law enforcement.

The Bank also cautioned media houses against promoting illegal operations. It urged radio, television, and online platforms to verify financial advertisers' legitimacy before airing content.

In conclusion, the Bank of Ghana called on all Ghanaians to stay vigilant. They should avoid falling victim to fraudulent schemes.