The Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has raised concerns over large sums of foreign currency being moved out of the country without proper declaration.
According to him, some individuals have been intercepted at Ghana’s airports attempting to carry over one million dollars in cash without notifying authorities, in clear violation of the law.
Dr. Asiama disclosed this during a recent press briefing in Accra, stressing that such actions not only breach Ghana’s foreign exchange regulations but also undermine efforts to stabilise the local currency.
He said “If you look at the currency declaration context framework, for example, the intel we got was that some people actually take out, you know, large volumes of cash.
“People are carrying over a million dollars just out of Ghana, without declaring these, those are leakages, right?”
“And so as a regulator, it is for us to work together with the other regulators, GRA and the others to ensure that if you have to carry such large sums, these are accounted for.
“These are declared. The sources are known. And don’t forget, that’s also good for the anti-money laundering fight that we have on our hands,” he revealed.
The BoG Governor speaking on Joy News’ PM Express Business Edition, described such practices as major leakages that threaten the stability of the economy and undermine efforts to fight money laundering.
He said “These are things we should have been enforcing, but given the context in which we are, we’ve seen clearly that we need to set those boundaries clearly so that the markets can function and function properly.”
Implications for the cedi
The BoG Governor explained that these illegal outflows of foreign exchange contribute to pressure on the Ghana cedi, as the country continues to grapple with currency depreciation and inflationary challenges.
The movement of large sums of undeclared cash, he noted, creates distortions in the financial system and weakens Ghana’s foreign reserves.
He further cautioned travellers and business people to comply with existing laws, which require individuals carrying amounts above $10,000 (or its equivalent in foreign currency) to declare it at designated points.
The Governor reaffirmed BoG’s commitment to enforcing financial regulations and working with stakeholders to address loopholes in the system.
Ghana, like many developing economies, faces challenges with foreign exchange management amid rising import bills and limited export earnings.
BoG law on $1m carried out without declaration
In Ghana, it is illegal for a traveller to carry $1 million out of the country in cash. Strict anti-money laundering laws and foreign exchange regulations require large sums to be transferred through banks and properly documented.
- $10,000 without declaration: A person may carry up to $10,000 (or its equivalent in other currencies) into or out of Ghana without declaring it.
- Bank transfers required for larger amounts: Any amount over $10,000 must be transferred through a bank or an authorised dealer, not carried as physical cash.
- Declaration form: Travellers with more than $10,000 must declare the full amount using a Customs Division of the Ghana Revenue Authority (GRA) Foreign Currency Declaration Form (FX-5).
- Supporting documents for over $50,000: For amounts greater than $50,000, outbound travellers must also provide additional documents, including endorsed bank slips or foreign exchange bureau receipts showing the source of the currency.
- Seizure of funds: The undeclared amount would be immediately seized by authorities.
- Fines and criminal charges: Violators are subject to heavy fines and possible criminal prosecution for illegal dealing in foreign exchange and money laundering.
- Prohibition on transport via cargo: Transporting foreign currency via mail or cargo is also strictly prohibited and will result in confiscation.
