BoG to clean up SDIs sector – Dr. Asiama

The Bank of Ghana (BoG) is gearing up to clean up the Specialized Deposit-Taking Institutions (SDIs) sector as part of broader efforts to strengthen Ghana’s financial industry.
The central bank is currently working with the Ministry of Finance to ensure that the necessary measures are implemented to bring stability and transparency to the sector.
Governor of BoG, Dr. Johnson Asiama, made this announcement during the 123rd Monetary Policy Committee (MPC) press conference in Accra.
He highlighted the need for regulatory improvements and structural reforms to safeguard depositors’ funds and enhance financial governance.

New regulatory measures for financial institutions
In November last year, the BoG issued a comprehensive outsourcing directive designed to improve governance and risk management frameworks for banks, SDIs, financial holding companies, and development finance institutions.
The directive provides clear guidelines on outsourcing practices to ensure financial institutions maintain operational integrity.
Regulated financial institutions have until July 1, 2025, to comply with the directive.
Failure to do so will result in an administrative penalty of one thousand penalty units, equivalent to GH₵12,000.
This enforcement highlights the BoG’s determination to maintain a resilient financial sector that adheres to strict governance and operational standards.

Limitations on outsourcing key functions
The BoG’s directive specifies functions that financial institutions may outsource only with prior approval, while also restricting the outsourcing of certain essential roles to maintain the independence and integrity of decision-making processes.
According to the directive, regulated financial institutions cannot outsource strategic functions such as Board and Senior Management roles, which include corporate planning, organizational oversight, and major decision-making responsibilities.
Additionally, financial institutions are prohibited from outsourcing credit approval decisions, compliance with Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) regulations, and Know Your Customer (KYC) verification for new account openings.
Other restricted functions include internal audits, risk management, and cybersecurity oversight.
These measures are intended to prevent financial malpractices and enhance the accountability of financial institutions in Ghana.
The BoG’s initiative underscores its commitment to fostering a stable financial environment while ensuring that banks and SDIs operate efficiently without compromising governance principles. The ongoing collaboration with the Ministry of Finance signals a proactive approach to maintaining a secure and transparent financial system.