Bank of Ghana to penalize gold firm for taking deposits

BoG in the latter part of last year warned the public not to deal with the institution because it was not licensed to take deposits.

Bank of Ghana (BoG) has indicated that it would soon take action against gold buying firm Menzgold after preliminary investigations found it was taking deposits without approval.

Responding to questions at MPC press conference Monday, BoG Governor, Dr Ernest Addison said that the Central Bank will collaborate with the Lands and Natural Resources Ministry to finalise on Menzgold.

“What is clear to us is that they have the system that accepts deposits from the public. We are discussing with the Ministry who originally gave them their license," the Governor said.

The Central Bank argued that the company was conducting business contrary to some provisions in the Banks and Specialized Deposit-taking institutions Act, 2016 (Act 930).

The company at the time denied that it was taking deposits from the public insisting that they were just involved in commodity trading, buying and selling of Gold.

Chief Executive of the company, Nana Appiah Mensah, in a Twitter post in December 2017 described the action by the regulator as reckless and irresponsible.

“The BoG is well informed that Menzgold is operating within the legal framework, Where is Ghana’s commodity trading act?  Stop this hypocrisy,” he added


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