Implement Anti-Money Laundering Act (GH0029)

Problem to be addressed ● Ghana was blacklisted by the EU in May 2020 for lapses in the country’s AML /CTF regimes. Ghana responded to the blacklisting by enacting the Anti-Money Laundering Act, 2020 (Act 1044). Ghana was subsequently removed from the blacklist. The task now is to sustain the removal from the blacklist.

What is the commitment?  The commitment is to effectively implement the AntiMoney Laundering Act 2020 to ensure that Ghana does not get blacklisted again for lapses in the country’s AML/CTF regime.

Contribution of commitment to solving problem ● In past years Ghana has been on and off the blacklist of the EU. The commitment will prevent further blacklisting.

Relevance of commitment to OGP values  Commitment will ensure implementation of Ghana’s international obligations relating to Anti-Money Laundering and terrorism financing.  Accountability and fighting impunity will be sustained

Additional information

Milestone Activity with a verifiable deliverable Start Date: End Date:  Government to establish the Board and committees of FIC Nov. 2021 June 2023  Parliament to pass Legislative Instrument for Anti- Money Laundering Act, 2020 (Act 1044) Nov. 2021 June 2023  FIC to publish annually report on the implementation of the Act Jan. 2022 June 2023  FIC to engage CSOs and other stakeholders on the implementation of the Act Jan. 2022 June 2023

Action Plan Review

Commitment 2. Implement the Anti-Money Laundering Act

● Verifiable: Yes

● Does it have an open government lens? Yes

● Potential for results: Modest

Results Report

Commitment 2. Anti-Money Laundering Act

• Verifiable: Yes
• Does it have an open government lens? Yes
• Potential for results: Modest

This commitment sought to prevent Ghana from being blacklisted due to lapses in its AML/CTF regime, by establishing frameworks for effective implementation of the Anti-Money Laundering Act, 2020 (Act 1044). Ghana enacted the Anti-Money Laundering Act, 2020 (Act 1044), which provided for the establishment of the Financial Intelligence Centre (FIC). This was prompted by the EU Commission’s action in May 2020, where Ghana was blacklisted due to deficiencies in its AML/CTF regimes. The commitment sought to implement this legislation by establishing the board and committees for FIC, passing legislative instruments, and engaging stakeholders in implementation.

Two of the four milestones were implemented. The government reconstituted the Board membership of the FIC, [13] established sub-committees aligned to the various functions such as finance and human resources, [14] and, in partnership with the Institute for Democratic Governance, [15] engaged non-profit organizations through a one-day training on their role in combating AML/CTF. [16] [17] However, the pledged legal instruments to operationalize implementation on the AML Act were not established. Furthermore, FIC did not publish the intended annual reports on implementation of the law, although Ghana’s self-assessment report indicates that the draft reports for years 2020-2022 were under review. [18]

Ghana was removed from the European Union’s list of high-risk third world countries, [19] and has managed to maintain this. Ghana further received three positive technical compliance re-ratings from the Intergovernmental Action Group against Money Laundering in West Africa’s fifth follow-up report. [20] However, without the necessary legislative instruments to operationalize the law, the risk of poor or non-implementation of the AML Law remains, hence limiting the achievement of the desired result.