New BOG regulations impose restrictions on Gold export companies

The Bank of Ghana (BoG) will from this month begin rolling out new rules for gold export. The new rules which will take effect from Tuesday, September 15, 2015 will affect all gold exports.

According to the central bank per the new measures all exports of gold must be done only through the Precious Minerals Marketing Company Limited (PMMC).

PMMC is a limited liability company operating under the Companies’ Code, with the Government of Ghana as the sole shareholder. Prior to this move PMMC among other services exports gold on behalf of third parties for a commission.

Per the new rules Licensed Gold Exporters (LGEs) will also not be permitted to export gold for third parties.

According to the BoG authentication would also be required of all LGEs thus the exporters must download Form FEX A4 from the Bank of Ghana website for completion and submission in connection with gold exports.

While all LGEs intending to export gold should contact Bank of Ghana with proof of license to export gold for their access credentials. The central bank warns the downloaded Form FEX A4 is non-transferable and is non-assignable while LGEs would not be permitted by Ghana Revenue Authority (Customs Division) to export gold unless the completed Form FEX A4 bears Bank of Ghana’s embossment.

Exporters of gold must also provide proof of independent certification by PMMC of the weight, quality and value of the gold earmarked for export which is a necessary requirement to secure the Bank of Ghana’s embossment.

According to the BoG the new measures is pursuant to Section 2, subsection 3 of the Foreign Exchange Act 2006 (Act 723). It warns that gold exporters who fail to comply with the new measures on or after the effective date would not be able to export gold.