Liberia, Ghana Central Banks Clarify $20 Million Cash Transfer Saga, Dismiss Rumours Of Money Laundering

Emmanuel EjioforAugust 29, 20242 Mins read274

The Central Bank of Liberia (CBL) and the Bank of Ghana (BoG) have issued statements clarifying the legality of a recent $20 million cash transfer between the two countries. This followed media reports that questioned the transaction’s legitimacy.

The reports circulated earlier this week suggested that the importation of $20 million in Ghana bound for Liberia was illegal and possibly linked to money laundering activities involving officials from both Liberia and Ghana.

However, both central banks have refuted these claims, explaining that the transaction is part of a long-standing Cash Custody Agreement between the two nations.

“The importation of United States dollars is part of the Bank’s normal function, which is required to meet the needs of the economy, including the USD withdrawal demands and needs of the Government of Liberia and the commercial banks,” the CBL said.

“CBL and the Bank of Ghana (BoG) have a standing Cash Custody Agreement executed for the BoG to provide overnight custody for CBL imported cash when shipped from London by Travelex Currency, an international currency shipment company.”

The Liberian central bank assured the public that Ghana and Liberia’s customs authorities checked and cleared all cash shipments, ensuring the process was legal.

The Bank of Ghana supported this explanation Wednesday, stating that the cash transfer arrangement has existed since 2004. Under this agreement, the BoG temporarily holds currency on behalf of the CBL before it is re-exported to Liberia. The BoG maintained that this arrangement followed strict security and administrative protocols, with all relevant stakeholders informed of the transactions to maintain transparency.

The Bank of Ghana’s statement was prompted by concerns raised by Ghanaian Member of Parliament Samuel Okudzeto Ablakwa, who questioned the purpose of the transfer and its transparency.

In response, the BoG criticised Ablakwa’s public disclosure of sensitive information, asserting that the claims of wrongdoing were baseless and misleading.

“Currency management is a sensitive operation and has security implications; therefore, it is unfortunate that a lawmaker would circulate such sensitive procedural and administrative clearance letter involving another sovereign nation in a bid to misinform and disinform the public and attach a narrative that seeks to suggest some wrongdoing on the part of the Bank of Ghana,” BoG said in a statement.

“The arrangement between the Bank of Ghana and the Central Bank of Liberia signifies mutual trust between the two countries and a testament to the strong bond of friendship between Accra and Monrovia.

“The Bank of Ghana will continue to uphold its reputation as a reliable and trustworthy institution in all its international and domestic engagements in currency management.”

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