Determination: In Place But Needs Improvement
Ghana’s domestic legislative framework is in place and contains most of the key aspects of the CRS and its Commentary requiring Reporting Financial Institutions to conduct the due diligence and reporting procedures, but it needs improvement in relation to the scope of Financial Accounts required to be reported (SR 1.2), and the framework to enforce the requirements (SR 1.4). Most significantly, Ghana’s legislative framework does not include rules to prevent circumvention of due diligence and reporting obligations and there are no sanctions on Account Holders and Controlling Persons for the provision of false self-certifications.
SR 1.1 Jurisdictions should define the scope of Reporting Financial Institutions consistently with the CRS.
Ghana has defined the scope of Reporting Financial Institutions in its domestic legislative framework in accordance with the CRS and its Commentary.
Recommendations:
No recommendations made.
SR 1.2 Jurisdictions should define the scope of Financial Accounts and Reportable Accounts consistently with the CRS and incorporate the due diligence procedures to identify them.
Ghana has defined the scope of the Financial Accounts that are required to be reported in its domestic legislative framework and incorporated the due diligence procedures that must be applied to identify them in a manner that is largely consistent with the CRS and its Commentary. However, a deficiency has been identified. More specifically, Ghana does not specify the date as of when a Financial Institution needs to implement policies for the returning of overpayments, which is required in order for Depository Accounts due to not-returned overpayments to be treated as Excluded Accounts.
Recommendations:
Ghana should amend its domestic legislative framework to require that Financial Institutions to implement policies and procedures with respect to limiting or returning overpayments from a specified date in order for Depository Accounts due to not-returned overpayments to be treated as Excluded Accounts.
SR 1.3 Jurisdictions should incorporate the reporting requirements contained in Section I of the CRS into their domestic legislative framework.
Ghana has incorporated the reporting requirements in its domestic legislative framework in accordance with the CRS and its Commentary.
Recommendations:
No recommendations made.
SR 1.4 Jurisdictions should have a legislative framework in place that allows for the enforcement of the requirements of the CRS in practice.
Ghana has a legislative framework in place to enforce the requirements in a manner that is largely consistent with the CRS and its Commentary. However, deficiencies have been identified. More specifically, Ghana’s legislative framework:
does not include rules to prevent all Financial Institutions, persons or intermediaries from adopting practices intended to circumvent the due diligence and reporting procedures as required;
does not impose sanctions for the provision of a false self-certifications by Account Holders and Controlling Persons; and
does not include rules requiring Reporting Financial Institutions to keep records of self-certifications in accordance with the requirements.
These are key elements of the required enforcement framework and are therefore material to the proper functioning of the AEOI Standard.
Recommendations:
Ghana should amend its domestic legislative framework to include rules to prevent all Financial Institutions, persons and intermediaries from adopting practices intended to circumvent the reporting and due diligence procedures, rather than just those on whom the AEOI Standard imposes an obligation.
Ghana should amend its domestic legislative framework to include sanctions on Account Holders and Controlling Persons for the provision of a false self-certification.
Ghana should amend its domestic legislative framework to require Reporting Financial Institutions to maintain records of self-certifications for at least five years from the deadline to report the information, rather than six years from the date when an account is closed.