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BOG announces the arrest of Directors of Dancom Microfinance

By PrimeBusiness

The Bank of Ghana, BOG has announced the arrest and prosecution of the Directors of Dancom Microfinance for engaging in deposit-taking activities without a licence.

Announcing the arrests in a notice today October 3, 2018, the Bank of Ghana (BoG) said Dancom Microfinance Ltd was not licensed to engage in microfinance business.

It added that the offices of the company have been closed down as a result

"Accordingly, the general public is cautioned that anyone who transacts business with Dancom Microfinance Limited does so at his or her own risk, and the Bank of Ghana WILL NOT be liable to such clients or depositors in the event of loss," the statement signed by BoG Secretary, Mrs Frances Van-Hein Sackey said.

Passed in July 2016, Act 930 gives the BoG overall supervisory and regulatory authority in all matters related to deposit-taking

It stipulates that authorised agents include an apex body, network, industrial association, self-regulatory organisation or any other person recognised by the BoG.

The Act says a person shall not carry on a deposit-taking business in or from within the country unless that person is a body corporate formed under the laws of this country.

The Act says the BoG shall have the sole responsibility for the issuance of licences to banks and specialised deposit-taking institutions.

The central bank also has the authority to grant approval to foreign banks with respect to the establishment of representative offices and the registration of financial holdings.

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