SANCTIONS/ PENALTIES

A. PECUNIARY SANCTIONS (FINANCIAL PENALTIES): Refer to penalties/sanctions.

B. ADMINSTRATIVE SANCTIONS where the contravention of offences (as described in the sanctions/penalties document) persists after three penalties, the Securities and Exchange Commission, Ghana will exercise one or more of the prerogative actions listed below, in addition to the penalties. i. Blacklisting of AMLRO from working in any financial institution for one

(1) or more years depending on severity of the offence

ii. Direct penalties on the Managing Director (MD), Anti-Money Laundering Reporting Officer (AMLRO) or any officer who is identified as being responsible for the breaches.

iii. Naming and shaming in the media to act as deterrent for future breaches of the AML/CFT regime in Ghana.

iv. Refusal to develop new products and/or branches or other restriction of license v. Suspension of license 21

vi. Revocation of license.

Basis of sanctions

The sanction regime is being implemented by the Securities and Exchange Commission, Ghana (SEC) and Financial Intelligence Centre (FIC) drawing from its powers as provided by Sections 39 (5) & (6) of the Anti-Money Laundering Act 2008 (Act 749) as amended by Anti-Money Laundering (Amendment) Act, 2014 (Act 874) and Section 138 and Section 209 of the Securities Industry Act, 2016 (Act 929).

PENALTIES

1. Section 41 of Act 749 as amended by Section 20 (1)(b)and (2) of AML Amendment Act Part A (1.5) (a) of SEC/FIC AML/CFT Guidelines. Offence Non designation of a compliance officer (AMLRO) at management level. A minimum of 500 penalty unit to this.

2. Section 28 of Act 749 as amended by; Failure to provide access to information to SEC, FIC and any A minimum of 500 penalty units.

3. Section 9 of Act 874 and Section 29 of Act 749 as amended by Section 10 of Act 874. Part A(1.2)(a) of SEC/FIC AML/CFT Guidelines; other competent Authority A minimum of 550 penalty units.

4. Section 23 of Act 749 as amended by Section6(1)(2) (3)(4) of AML Amendment Act, Act 874 Part A(1.6) of SEC/FICAML/C FT Guidelines; Failure to perform Customer Due Diligence(CDD) by MOs including identification and verification of existing customers, occasional customers and the ultimate beneficiary of corporate entities during on-boarding of new customers. A minimum of 500 penalty units with action of refund of total damage of the bidding cost to customer.

5. Section 30 of Securities Industry Act, Act 929, Part A(1.7)(i) and Part B(2.14)(a) of SEC/FIC AML/CFT Guidelines; Failure to keep identification and verification documents of clients. A minimum of 500 penalty units

6. Regulation 10 of Anti-Money; Failure of MOs to perform enhanced. A minimum of 500 penalty units.

7. Laundering Regulations, 2011, LI. 1987 Part A (1.8) of SEC/FIC AML/CFT, Section 24 of Act 749 as

amended by Section 8 of Act, Act 874. Part A (1.19) of SEC/FIC AML/CFT Guidelines. Failure of MOs to maintain records of transactions; A minimum of 500 penalty units with cash penalty of $250,000.

8. Anti-Money Laundering Regulations 33 of LI 1987. Part A (1.1) (b) of SEC/FIC AML/CFT Part A(1.7)(j) of SEC/FIC Guidelines: Failure to put in mechanisms to screen for PEPs, high risk clients using UN Sanctioned Persons/Entities Lists and other official lists to put in place management information systems to monitor, detect, evaluate and generate STRs. A minimum of 230 penalty units, limitation of movement, confiscation of properties and cash payment of $750,000 to the state.

9. Section 40 of Act 749 as amended by Section 19(1) and (2) of AML Amendment Act, Act 874 Part A (1.3) Part A(1.25)(a)(b) of SEC/FIC AML/CFT Guidelines: Failure of MOs to establish internal policies and procedures to prevent money laundering and financing of terrorism. the Board to ensure an effective implementation of the MO’s AML/CFT Compliance Programme Of Cash Transaction: A minimum of 500 penalty units and closing down of such office will be implemented 10. Section 40 of Act 749 as amended by Section 19( 2) (e) of AML Amendment Act, Act 874 Part A (1.20) of Part A (1.25) (b) of SEC/FIC AML/CFT Guidelines: Failure to conduct an independent test on to obtain Board Approval of AML/CFT documents and allocate adequate resources (e.g. Skilled staff and budgetary allocation) to the AML/CFT Compliance Function. This includes training report, Currency Transaction report, etc. A minimum of 500 penalty units with property confiscation, Foreign Branches and Subsidiaries comply will be affected too.