Act 1044 Explained: Ghana's Anti-Money Laundering Act 2020

Short answer: The Anti-Money Laundering Act, 2020 (Act 1044), assented to on 29 December 2020, is Ghana's core anti-money laundering law. It replaced the Anti-Money Laundering Act, 2008 (Act 749), re-established the Financial Intelligence Centre (FIC) and applies to the accountable institutions in its First Schedule. Their main duties are customer due diligence, suspicious transaction reports within 24 hours, cash and electronic transfer reports, five-year records and a compliance programme run by an Anti-Money Laundering Reporting Officer (AMLRO).

This guide is for AMLROs, compliance managers, boards and legal teams at Ghanaian banks, specialised deposit-taking institutions, insurers, securities firms, payment and remittance businesses, casinos and designated non-financial businesses and professions (DNFBPs). It is a practical guide, not legal advice. Act 1044 and the Anti-Money Laundering Regulations, 2011 (L.I. 1987), which remain in force, are the authoritative texts.

Who the Act covers

Section 28 and the First Schedule list the accountable institutions:

Financial businesses. Businesses that, for or on behalf of customers, take deposits, lend, issue and administer means of payment, give guarantees, trade foreign exchange, money-market instruments, securities or commodity futures, manage portfolios or funds, provide safekeeping, leasing or hire purchase, collect pension contributions, or change money and currency. Also any other activities the Bank of Ghana or the Securities and Exchange Commission prescribe.
Remittance and exchange businesses.
Insurance companies.
Operators of games of chance.
Real estate companies and agents, for clients' purchases and sales.
Lawyers, notaries and accountants, for specified client transactions: real estate, client money, accounts, company formation and management, and buying and selling businesses.
Dealers in precious metals and precious stones, and in motor vehicles.
Auctioneers, trust and company service providers, and nominees.
Virtual asset service providers.

Supervision sits with the supervisory bodies, which the Act lists as the Bank of Ghana, the National Insurance Commission, the Securities and Exchange Commission, the Gaming Commission and the Minerals Commission, plus any body designated by law or by the Centre (section 63). Where an institution has no direct supervisory body, the FIC supervises it or designates an institution to do so (section 52(2)).

The Act at a glance

Sections	Subject	The duty in short
1–5	Money laundering	The offence, abetment, conspiracy, penalties and confiscation
6–27	Financial Intelligence Centre	Establishment, objects, functions, board, staff and finances
28–29	Accountable institutions	The First Schedule list; the FIC's register of accountable institutions
30	Customer due diligence	No anonymous accounts; due diligence triggers; PEPs; wire transfers
32	Records	Five years
35	Games of chance	Identify chip buyers and keep a register of gaming transactions
38	Suspicious transactions	Report within 24 hours of the suspicion; no tipping-off
39–43	Other reports	No structuring; cash transaction reports; currency declarations; electronic transfers; procedures
44–46	Protection and orders	Good-faith protection; holding and suspending transactions; monitoring orders
48	Offences	Records, reporting and disclosure offences
49–51	Compliance	Internal rules, training, the AMLRO
52–53	Supervision	Supervisory powers; administrative penalties
54–57	Miscellaneous	Extradition, trial court, freezing, oath of secrecy
64	Repeal	Act 749 and its 2014 amendment repealed; regulations continue

The money laundering offence (sections 1 to 5)

A person commits money laundering if the person knows, or ought to have known, that property is or forms part of the proceeds of unlawful activity, and:

converts, conceals, disguises or transfers it to conceal its illicit origin, or to help someone involved evade the legal consequences;
conceals or disguises its true nature, source, location, disposition, movement or ownership, or rights to it; or
acquires, uses or takes possession of it, knowing or suspecting at the time of receipt that it is proceeds.

A person under investigation who holds property they cannot account for, disproportionate to their income from known sources, is deemed to have committed the offence (section 1(3)). Abetment and conspiracy are covered through the Criminal Offences Act, 1960 (Act 29) (sections 2 and 3).

Penalty (section 4)	Individual	Corporate entity
Fine	100% to 500% of the proceeds of money laundering	Not less than 300% of the proceeds
Imprisonment	12 months to 10 years, or the fine and imprisonment together	–

Property a court finds was acquired in contravention of the Act is confiscated to the State (section 5). Money laundering, terrorist financing and proliferation financing are extraditable offences, and the High Court tries offences under the Act (sections 54 and 55).

The Financial Intelligence Centre (sections 6 to 29)

The FIC is a body corporate (section 6). Its objects are to help identify the proceeds of unlawful activity and combat money laundering, terrorist financing, proliferation financing and tax evasion. It shares information with investigating, revenue and security authorities, and with its foreign counterparts (section 7). Its functions include:

receiving, analysing and disseminating financial intelligence;
disseminating "the United Nations Consolidated List, third party list and domestic list, without delay" to accountable institutions and competent authorities;
advising, monitoring and guiding accountable institutions;
keeping a secured financial intelligence database;
issuing directives and notices to enforce compliance (section 8).

The FIC keeps a register of accountable institutions. Each supervisory and self-regulatory body sends it a list of the institutions registered with it, and the Centre gives each one an identification number (section 29). Reports reach the Centre through its goAML portal: see our FIC goAML registration guide.

Customer due diligence and PEPs (section 30)

No anonymous or fictitious accounts.
When due diligence applies: when establishing a business relationship; for occasional transactions above the cash-reporting threshold, including linked transactions; for occasional wire transfers; on any suspicion, whatever the amount; and when earlier identification data is doubtful. Due diligence continues through the relationship.
Politically exposed persons. Institutions put measures in place to identify PEPs and other high-risk persons, and manage the risk with enhanced identification, verification and ongoing due diligence.
Unusual transactions. Institutions note complex or unusually large transactions, unusual patterns and business with countries that do not sufficiently apply the FATF Recommendations. They examine the background and purpose, record their findings and report these matters to the Centre within 24 hours.
Wire transfers. Where originator information is incomplete and cannot be obtained, the institution refuses the transfer and files a suspicious transaction report.

The Bank of Ghana requires the Ghana Card as the only identification for transactions at the financial institutions it licenses and regulates, from 1 July 2022.

Records (section 32)

Keep account files, business correspondence and identity documents for at least five years after the relationship ends. Keep transaction records, detailed enough to reconstruct each transaction, for at least five years from the transaction. Keep copies of suspicious, cash and other reports for at least five years from the date of the report. An institution that appoints someone else to keep records tells the Centre in writing within seven days.

Suspicious transaction reports (section 38)

An accountable institution that knows or reasonably suspects that someone has received or is about to receive proceeds of unlawful activity files a suspicious transaction report (STR) "within twenty-four hours after the knowledge or the ground for suspicion". The same applies where a business entity's transaction has no apparent lawful purpose, was conducted to avoid a reporting duty, may be relevant to tax evasion, or has been used for money laundering.

There is no minimum amount, and attempted transactions are included. Tipping-off is prohibited, and the identity of the person who prepared or handled the report is protected. See our STR guide.

Cash, currency and electronic transfer reports (sections 39 to 43)

Cash transactions (section 40). The FIC, in consultation with the supervisory bodies, sets a cash threshold for each accountable institution and publishes it in the Gazette. Institutions report cash transactions above the threshold within 24 hours, including linked transactions. The FIC's figures are GH¢50,000 for banks and the securities sector and GH¢20,000 for savings and loans companies and microfinance institutions.
Structuring (section 39). No one may split transactions, across one or more institutions, to avoid a report.
Currency at the border (section 41). Anyone carrying currency into or out of Ghana above the amount the Bank of Ghana prescribes declares it at the port of entry or exit, and the FIC receives a copy.
Electronic transfers (section 42). Institutions report electronic transfers into or out of Ghana on behalf of customers above the amount the Bank of Ghana prescribes, within 24 hours. The FIC says commercial banks report all inward and outward transfers above US$1,000.
Procedure (section 43). Reports are made in the manner the FIC prescribes, and the FIC may ask for more information about any report.

See our CTR and ECTR guide.

Protection, holding and monitoring orders (sections 44 to 46)

Good-faith protection (section 44). No criminal, civil or administrative action lies against an institution or its staff for breaching a disclosure restriction when they file an STR or give information to the Centre in good faith.
Holding a transaction (section 45). An institution does not proceed with a transaction it knows or reasonably suspects to be related to money laundering, terrorist financing, proliferation financing, tax evasion or other unlawful activity until the Centre directs otherwise. Where stopping it is not possible, or would frustrate an investigation, it executes the transaction and reports immediately. The Centre may suspend a transaction for up to seven working days while its Chief Executive Officer seeks a freezing order.
Monitoring orders (section 46). On the Centre's application, a court may order an institution to report the transactions of a specified person or account for up to three months, extendable.

The Chief Executive Officer may also direct the freezing of a transaction or account, and must apply to the High Court for confirmation within seven working days (section 56).

The compliance programme (sections 49 to 51)

Each accountable institution formulates and implements internal policies, procedures and controls. They must cover:

customer due diligence and politically exposed persons;
record keeping and correspondent banking;
"special monitoring of a transaction";
reporting of suspicious and other transactions;
wire transfers;
risk assessment and compliance management.

The programme also needs employee screening, ongoing training, a policy against misuse of new technologies (including electronic means of storing and transferring value), a risk assessment before any new product or technology is launched, and an independent audit (section 49). Internal rules go to employees, and to the FIC or the supervisory body on request.

The institution appoints an AMLRO "of a managerial level", with access to its books, records and employees, and trains its directors, officers and employees on an ongoing basis (section 50). Failing to put internal rules in place, train staff or appoint an AMLRO attracts an administrative penalty (section 51).

Supervision and administrative penalties (sections 52 and 53)

Supervisory bodies supervise and enforce compliance with a risk-based approach. They examine institutions, require records, issue guidance and directives, and impose administrative penalties after an examination, notifying the Centre (section 52).

The Centre or a supervisory body may impose one or more administrative penalties (section 53):

a written warning;
suspension or revocation of a licence;
500 to 20,000 penalty units for an individual;
1,000 to 100,000 penalty units for an entity.

In setting a penalty it weighs:

the seriousness and duration of the breach;
any earlier failures;
remedial steps taken;
action by other bodies;
the institution's size.

For a bank, the penalty can be recovered by asking the Bank of Ghana to debit the bank's account there. An institution may ask for reconsideration within 15 days.

The Bank of Ghana and FIC administrative sanctions schedule (August 2022) applies these powers to the institutions the Bank of Ghana regulates. Among its entries:

Breach	Administrative penalty
Failure to file STRs or SARs	500 to 20,000 penalty units on the AMLRO
Failure to file cash transaction or electronic transfer reports	500 to 20,000 penalty units on the AMLRO
Disclosing STR information or the identity of reporters	1,000 to 100,000 on the institution
Failure to implement transaction-monitoring controls, or "to acquire a system or software for transaction monitoring"	1,000 to 100,000 on the institution
Failure to keep records for five years	1,000 to 100,000 on the institution; 500 to 20,000 on directors and employees

Criminal offences (section 48)

Offence	Penalty
Section 48(1): among others, failing to submit a suspicious, cash or electronic transfer report within the time limit, tipping off, disclosing a reporter's identity, structuring, and records failures	Fine of 500 to 4,000 penalty units, or six months to five years' imprisonment, or both
Section 48(2): among others, failing to submit an STR or cash report, giving a misleading, false or incomplete statement, failing to report an electronic transfer, and proceeding with a transaction that should have been stopped	Fine of 1,000 to 10,000 penalty units, or 12 months to five years, or both
Section 48(2) offence by a company	Fine of 5,000 to 50,000 penalty units; each director or officer is considered to have committed the offence, subject to a due-care defence
Intentional or grossly negligent failure to comply (section 48(5))	Administrative penalty of up to 10,000 penalty units, payable to the supervisory body

Administrative and criminal proceedings may run in parallel (section 48(6)).

L.I. 1987 still applies

Act 1044 repealed Act 749 and its 2014 amendment, but regulations made under them continue in force until reviewed or withdrawn (section 64). The Anti-Money Laundering Regulations, 2011 (L.I. 1987) still set the working detail, for example:

internal rules that let staff recognise suspicious transactions and report them without delay (regulation 4);
the AMLRO as a person of senior status who receives staff reports (regulation 5);
the internal reporting chain from employee to AMLRO to the FIC within 24 hours (regulation 34);
the triggers for casinos, estate agents, lawyers, accountants and dealers (regulation 32).

What this means for your systems

Duty	What a system has to do
Due diligence and PEPs	Hold identity (Ghana Card) and beneficial-owner data, rate customer risk, flag PEPs for enhanced due diligence
Sanctions	Screen customers and transactions against the UN Consolidated List and the domestic list the FIC disseminates
Special monitoring	Raise alerts on complex, unusually large and unusually patterned transactions, and on structuring below the cash threshold
Suspicious transactions	Route staff reports to the AMLRO, record each decision and time-stamp each step to meet the 24-hour rule
Cash and electronic transfer reports	Aggregate linked cash transactions against your sector's threshold, detect transfers above US$1,000 (commercial banks) and file within 24 hours
Records	Keep reconstructable records and report copies for at least five years

Our buyer's guide to AML compliance software in Ghana turns these duties into evaluation criteria.

Frequently asked questions

What is Act 1044?

The Anti-Money Laundering Act, 2020 (Act 1044), Ghana's core anti-money laundering law. It was assented to on 29 December 2020, replaced the Anti-Money Laundering Act, 2008 (Act 749) and its 2014 amendment, and establishes the Financial Intelligence Centre.

Who must comply with Act 1044?

The accountable institutions in its First Schedule. They include banks and other financial businesses, remittance businesses, insurers, operators of games of chance, real estate agents, lawyers, notaries and accountants for specified client work, dealers in precious metals, stones and motor vehicles, trust and company service providers, and virtual asset service providers.

What is the penalty for money laundering in Ghana?

On summary conviction, an individual faces a fine of 100% to 500% of the proceeds of money laundering, or 12 months to 10 years' imprisonment, or both. A corporate entity faces a fine of not less than 300% of the proceeds (section 4 of Act 1044).

What does section 38 of Act 1044 require?

A suspicious transaction report to the Financial Intelligence Centre within 24 hours after the knowledge or ground for suspicion, with no minimum amount and including attempted transactions. It also prohibits tipping-off.

What does section 40 of Act 1044 require?

A report to the Centre within 24 hours of any cash transaction above the threshold the FIC sets for the institution's sector, including transactions that appear to be linked.

Is L.I. 1987 still in force?

Yes. Section 64 of Act 1044 keeps regulations made under the repealed Acts in force until they are reviewed or withdrawn, so the Anti-Money Laundering Regulations, 2011 (L.I. 1987) still apply.

See how Creodata's AML compliance software in Ghana maps each Act 1044 duty to a module: book a demo.

Ghana's Anti-Money Laundering Act, 2020 (Act 1044) Explained: What Accountable Institutions Must Do