BoG orders banks to give fraud units direct access to CEOs

The Bank of Ghana (BoG) has instructed banks to enhance the autonomy and efficiency of their fraud management units, including granting direct and unrestricted access to managing directors and chief executive officers. Governor Dr Johnson Asiama revealed that the central bank received complaints from the Ghana Association of Banks regarding the various ways banks currently structure their fraud functions.

At a meeting with bank executives, Dr Asiama emphasized that fraud poses a significant risk that requires urgent attention from the banking industry. He stressed the need for banks to bolster their fraud risk management through robust policies and controls aimed at preventing, identifying, and preventing fraudulent activities. According to Dr Asiama, the fraud unit must be properly positioned with unrestricted access to the managing director or chief executive officer to ensure the independence and effectiveness of fraud management within banks.

He also mandated banks to ensure that individuals responsible for fraud management possess the necessary skills, professional certifications, and technical competence. This directive comes as the central bank ramps up its supervisory scrutiny of risks arising from the increasing digitalization of financial services. Dr Asiama noted that while digitalization has brought substantial benefits to the financial sector, it has also heightened operational and cyber risks.

Consequently, the BoG is collaborating with industry stakeholders on the implementation of the Cyber and Information Security Directive and will tighten supervisory expectations regarding technology, customer fund protection, and third-party risks.