The efforts to combat money laundering in Ghana: An evaluation of the role of the financial intelligence centre

Abstract

In recent years, the twin threats of money laundering and terrorism financing (ML/TF) have attained alarming dimensions, putting the global financial system at risk. The above situation is further exacerbated by poor money laundering detection rates. Even though 91.1 percent of people who commit the crime of money laundering are sent to prison, 90 percent of money laundering crimes are never discovered. An evaluation of the role of the Financial Intelligence Centre is essential in that regard. The study, thus, sought to evaluate the role of the Financial Intelligence Centre in Ghana in combating money laundering. The study adopted a qualitative research approach. Seventeen key respondents were purposively sampled from across law enforcement institutions, reporting institutions and regulatory institutions in Ghana. The results of the study revealed that the current sources of money laundering in Ghana were found to be fraud, public sector-based money laundering, criminal activity-based money laundering, legitimate business-based money laundering, bank-based money laundering, and unconventionality-based money laundering. Arguably, these classifications represent a paradigm shift in how money laundering is conceptualized in many jurisdictions. The findings also showed that the full functioning of FIC is primarily affected by information – that is, appropriate and timely – public education, employee empowerment, and politics. Confiscation of property or funds was found to be the most common way law enforcement agencies punished ML perpetrators, in fulfilment of sections 7 and 8 of Act 1044, (2020). This seems to suggest that confiscation of funds or property may be the primary way ML perpetrators are punished or the most effective way, although there are other forms of punishment. Since money laundering perpetrators appear to fear confiscation of funds or properties because of the ability of this form of punishment to restrict organized criminal organizations, disrupt them, or impede the flow of funds derived from illicit activity, it is strongly advised that law enforcement agencies “double down” on this form of punishment.