GH₵88m banking sector fraud alarming – Finance Ministry warns

The Ministry of Finance says the rate at which fraud increasing is negatively impacting the sectors of the country especially the banking sector.

Cases of fraud which were reported in  2023 relating to the banking sector reached GH₵88 million that signifies a 7% increase from GH₵82 million in 2022. During the Ghana’s third mutual assessment under the Inter-Governmental Action Group Against Money Laundering in West Africa (GIABA), Andrew Kudjo Ameckson, the Acting Director of the Financial Sector Division at the Ministry of Finance, stated that It is our responsibility to intervene so that we can make a difference.

Andrew Kudjo Ameckson declared on citi Business News that “In the year 2023, there were exactly 15,865 fraud cases reported in the banking sector which shows a rise from 15,164 in 2022. The amount of money involved has really increased from GH₵82 million to GH₵88 million, drawing attention to the concerning pattern.”

“A 7% increase is not relatively insignificant. This is a deposit someone has made, someone’s capital suffered financial losses due to fraudulent acts. Even though just a single loss of a million cedis could mean a financial distress for an individual or business.”

Dr Cassiel Ato Forson, the Finance Minister has promised to strengthen its cooperative arrangements with essential law enforcement institutions, including the Financial Intelligence Centre (FIC) and the Economic and Organised Crime Office (EOCO), to control the problem.

While the Ministry of Finance place emphasizes on policy formulation and implementation, Andrew Kudjo Ameckson provided assurance that it would provide the necessary support to these institutions to enhance their vigorous measures that can help prevent fraudulent activities.

The rise in banking fraud entails a high level of risk to the confidence of investors and financial stability in Ghana. As financial crimes continue to increase day in day out, stakeholders are being encouraged to enhance regulatory supervision, strengthen cybersecurity measures and strengthen risk management frameworks to protect individuals who always deposit funds and maintain trust in the banking sector.

Image credit: CitiNews