BOG to arrest and prosecute unlicensed microfinance operators

The Bank of Ghana (BoG) is set to commence
arrest and prosecution of directors of
unlicensed microfinance institutions operating
in the country. This is part of moves by the central bank to
ensure sanity in the microfinance sector which
in recent times has seen an upsurge in
customer complaints. According to the Bank of Ghana, it may be
compelled to rope in media houses who
advertise the operations of these unlicensed
microfinance institutions who promise
unrealistic interest rates and later abscond with
depositors funds. BoG’s Head of Other Financial Institutions
Supervisory Department, Raymond Amanfu at
a press briefing said the central bank is
collaborating with the Financial Intelligence
Center (FIC) and the security agencies to
‘’track down, arrest and prosecute directors, shareholders and management of unlicensed
institutions and we may have to include media
houses that advertise these illegal institutions
such as fun clubs and associations for
abetment of crime.’’