Ghana's central bank has banned Access Bank from engaging in new foreign exchange business, including letter of credit (L/C) services.

But the Bank of Ghana has been careful to explain that its ban does not prevent Access Bank from following through on foreign exchange business it has already embarked on.

L/C suspension

The bank is only barred from issuing new L/Cs and engaging in new foreign exchange transactions for six months.

As well as continuing foreign exchange business it has already secured, the bank can also receive inflows into accounts held by customers.

Business continuity

Access Bank can also receive settlements for money transfers into accounts with correspondent banks.

The issuance of foreign currency-denominated drafts at the request of depositors and the settlement of outstanding transactions is also allowed.

Exchange laws

Access Bank has been suspended from foreign exchange business for breaching the country's exchange laws.

The bank was said to have transferred over US$10,000 without the necessary documentation on behalf of an individual who was not a customer.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.