The Bank of Ghana (BoG) is set to commence arrest and prosecution of directors of unlicensed microfinance institutions operating in the country.
[contextly_sidebar id=”SgTkQ7yUeqABLNwiirve1AJcBvEwR35o”]This is part of moves by the central bank to ensure sanity in the microfinance sector which in recent times has seen an upsurge in customer complaints.
According to the Bank of Ghana, it may be compelled to rope in media houses who advertise the operations of these unlicensed microfinance institutions who promise unrealistic interest rates and later abscond with depositors funds.
BoG’s Head of Other Financial Institutions Supervisory Department, Raymond Amanfu at a press briefing said the central bank is collaborating with the Financial Intelligence Center (FIC) and the security agencies to ‘’track down, arrest and prosecute directors, shareholders and management of unlicensed institutions and we may have to include media houses that advertise these illegal institutions such as fun clubs and associations for abetment of crime.’’
The Bank of Ghana as part of efforts to address concerns by customers of microfinance institutions is also planning to set up help desks in all regional branches of the bank.
The Bank of Ghana has reiterated that apart from DKM Microfinance Institution, it has not placed a moratorium on the operations of any microfinance institution in the country.
This is in response to an assertion by directors of Diamond Winners Microfinance in Bolgatanga to its customers that their accounts have been frozen by the central bank for the past three months.
Describing the proliferation of microfinance institutions across the country as worrying, Raymond Amanfu assured that there will be a clamp down on such companies.
Currently, majority of the microfinance institutions can be found in the Brong Ahafo Region, Upper East/Upper West, Northern and the Western Region
‘’No funds of any institution other than the commercial banks are maintained in the central bank’’ Mr Amanfu stated.
By: Lorrencia Nkrumah/citifmonline.com/Ghana