The
Bank
of
Ghana
has
notified
financial
institutions
to
abide
by
the
Banks
and
Specialised
Deposit-Taking
Institutions
Act,
2016
as
well
as
the
Fit
and
Proper
Persons
Criteria.
Under
the
laws
persons
who
were
directly
implicated
in
the
2017–2019
financial
sector
clean-up
and
all
previous
directors
of
failed
banks
are
barred
from
holding
key
positions
in
the
financial
sector.
A
notice
signed
by
BoG’s
secretary,
Sandra
Thompson,
indicated
that
excessive
and
imprudent
risk-taking
led
to
the
collapse
of
banks
and
other
deposit-taking
institutions
and
so
persons
who
were
directly
involved
in
such
risky
instances
should
not
be
allowed
to
hold
any
other
key
positions
in
banks
and
other
financial
institutions
“Poor
Corporate
Governance
contributed
significantly
to
excessive
and
imprudent
risk-taking
in
the
financial
sector,
which
led
to
the
failure
of
some
Regulated
Financial
Institutions
(RFIs)
licensed
by
the
Bank
of
Ghana
(BOG),
consequently
necessitating
the
2017-2019
banking
sector
clean-up.
“In
order
to
sustain
the
gains
made
from
the
clean-up,
the
BOG
issued
the
Corporate
Governance
Directive
in
2018
as
well
as
the
Fit
and
Proper
Persons
Directive
in
2019
to
strengthen
and
embed
sound
corporate
governance
practices
in
RFIs
and
to
entrench
the
gatekeeping
role
of
the
BOG
in
the
financial
sector,”
the
notice
explained.
“For
clarity,
those
under
the
ban
include
persons
who
worked
with
a
financial
company
“which
had
its
licence
revoked,
is
being
or
has
been
wound
up
by
a
court
of
competent
jurisdiction
or
other
authority
competent
to
do
so
within
or
outside
Ghana,
or
has
gone
into
receivership,
insolvency
or
involuntary
liquidation.”
“The
BOG
reminds
the
public
that
persons
who
have
been
directly
implicated
in
the
2017-2019
Financial
Sector
clean-up,
and
all
previous
directors
of
failed
banks
and
SDIs
since
the
enactment
of
Banks
and
Specialised
Deposit-Taking
Institution
Act,
2016
(Act
930)
do
not
qualify
to
hold
key
positions
under
the
fit
and
proper
persons
criteria,”
the
notice
further
warned.