Ghana AML for Accountants: Act 1044 and the FIC

Ghana's main anti-money laundering (AML) law is the Anti-Money Laundering Act, 2020 (Act 1044). This guide is written from the text of the Act as published on the Ghana Legal Information Institute (GhaLII) and from the Financial Intelligence Centre's own description of its role. We cover how accountants come into scope, the headline duties, and three questions the Act does not answer, so that you know what to confirm with the regulator.

Are accountants covered?

Yes, for part of their work. Under section 28 of the Act, "accountable institutions" are those listed in the First Schedule. Paragraph (c) of that Schedule covers a lawyer, notary or accountant when preparing for or carrying out certain client transactions, such as buying and selling real estate, managing client money, or creating or managing a legal person. Section 63 defines an accountant as a person registered under the Chartered Accountants Act, 1963 (Act 170). The text we read does not mention auditors. The Institute of Chartered Accountants, Ghana (ICAG) has since been governed by its own Act, Act 1058 of December 2020, and we have not checked whether the Act 1044 definition has been updated to match.

The Financial Intelligence Centre (FIC) describes the DNFBPs it deals with as including legal and accounting professionals, real estate players and dealers in precious metals and stones. The FIC is established as a body corporate under section 6 and receives, analyses and disseminates information about suspected proceeds of crime.

Who supervises accountants?

This is the first open question. Section 52(1) puts supervision and enforcement with supervisory bodies. Section 63 lists the Bank of Ghana, the National Insurance Commission, the Securities and Exchange Commission, the Gaming Commission and the Minerals Commission, and any body designated by law or by the Centre. It does not name a supervisor for accountants. Under section 52(2), where an institution has no direct supervisory body, the FIC or its designee supervises until one is designated by law. We could not find a source confirming who currently holds that role for accountants, so confirm it directly with the FIC and with ICAG.

Registration and reporting lines

Under section 29, supervisory and self-regulatory bodies give the FIC lists of registered accountable institutions, and the FIC assigns each an identification number. The FIC also says accountable institutions submit quarterly, half-yearly and annual reports on their compliance. We did not find, in the sources we read, a step-by-step registration process for accountancy firms.

Customer due diligence

Section 30 of the Act sets the core due diligence rules:

• anonymous accounts and accounts in fictitious names are prohibited (s.30(1));
• due diligence applies when establishing business relations, on occasional transactions above the threshold, on wire transfers, on suspicion, and where earlier identification data is doubtful (s.30(2));
• ongoing due diligence is required (s.30(4)), with enhanced measures for politically exposed persons (s.30(5));
• complex or unusually large transactions with no apparent lawful purpose must be reported within 24 hours (s.30(6) and (7)).

For how these ideas work in practice, see our guides to customer due diligence in accountancy practices and politically exposed persons.

Reporting: the 24-hour rule

Section 38(1) requires a suspicious transaction report "within twenty-four hours after the knowledge or the ground for suspicion". Section 38(3) extends the duty to attempted transactions. That is a much tighter clock than many accountants will be used to, so build it into your procedures. Cash transactions above a threshold are also reportable within 24 hours (s.40(2)), including linked transactions (s.40(3)). The Act leaves the threshold to the FIC to set in consultation with supervisory bodies and publish in the Gazette (s.40(1)), and the amount is not stated in the text we read. This is the second open question, so check the current Gazette notice.

Records and tipping off

Records must be kept for "not less than five years" (s.32(3)), counted from the end of the relationship, the date of the transaction or the date of the report, depending on the record. Record-keepers you appoint must be notified to the FIC in writing within seven days (s.32(6)).

Except where the law requires it, an accountable institution must not tell a customer or a third party that a report or investigation exists (s.38(4)).

What the Act says about penalties

The Act expresses most penalties in "penalty units", and the text we read does not state the cedi value of a penalty unit, so we do not convert them into money. In outline:

• money laundering (s.4): for individuals, a fine of 100% to 500% of the proceeds, imprisonment of 12 months to 10 years, or both; for corporate entities, a fine of 300% of the proceeds;
• tipping off (s.48(1)(f)): 500 to 4,000 penalty units, imprisonment of six months to five years, or both;
• administrative penalties (s.53(3)): 500 to 20,000 penalty units for individuals and 1,000 to 100,000 penalty units for entities.

Open questions to settle before you rely on this

1. Who is the designated supervisor for accountants today?
2. What is the current Gazette cash threshold?
3. Has any later amendment, regulation or FIC guideline changed the duties above? We did not review anything published after the Act.

Practical steps: our suggestions

These are our suggestions, not requirements of the Act.

• Map which of your services fall within paragraph (c) of the First Schedule and record the reasoning.
• Write a reporting procedure that can produce a report inside 24 hours, with a named person who can sign it off.
• Keep the longer of any retention periods your supervisor confirms, and no less than five years.
• Ask the FIC and ICAG for their current guidance in writing and keep the replies on file.

For comparison with other countries, see our guides to Nigeria and Pakistan.

Frequently asked questions

How quickly must an accountant in Ghana report a suspicion?

Within twenty-four hours of the knowledge or ground for suspicion, according to section 38(1) of Act 1044.

Are auditors covered?

The text we read defines an accountant by reference to registration under the Chartered Accountants Act, 1963 and does not mention auditors. Ask the FIC how it treats audit work.

How long do I keep records?

Not less than five years under section 32(3), counted from a trigger that depends on the type of record.

This guide is general information, not legal advice. Confirm current requirements with the Financial Intelligence Centre.