Friday, July 18, 2008

BANK OF GHANA ISSUES ADDITIONAL KYC GUIDELINES


Following the introduction of the e-zwich common platform and biometric smartcard, and the passage of Ghana’s Anti-Money Laundering and the Credit Reporting Acts, the Bank of Ghana has issued additional Know Your Customer (KYC) guidelines to banks and savings and loans companies.

With effect from September 1, 2008, all new personal customers of banks and savings and loan companies must be issued with an e-zwich smartcard as part of the KYC process. Also, e-zwich smartcards must be issued to all existing personal customers by December 31st, 2008 as part of KYC procedures.

Furthermore, to make it easier for the unbanked to open bank accounts, under the new guidelines account opening procedures for people who engage in low value transactions (i.e. below GH¢ 10,000) no longer require proof of residence such as a utility bills. While such proof is desirable, it is no longer obligatory unless where the bank considers otherwise. In any case these customers should be issued with e-zwich smartcards.

In addition to all the other benefits of using the e-zwich smartcard, these measures will eliminate identity fraud in the banking system because the fingerprints of individual customers on the e-zwich smartcard are unique.
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