BoG, Ghana Police shut down Dek-Nock investments over unauthorized deposits
The Ghana Police Service in partnership with the Bank of Ghana (BoG) has shut down Dek-Nock Investments situated at Nungua and Ashaiman within the Greater Accra Region.
The central bank says this action was in accordance with Section 20(2)(g) of the Banks and Specialised Deposit-taking Institutions Act, 2016 (Act 930).
A statement released by the BoG said Dek-Nock Investments was engaged in unauthorised deposit-taking contrary to Section 6(1) of Act 930.
“The Ghana Police Service is conducting further investigations into the operations of Dek-Nock Investments,” it said.
The statement advised all customers of Dek-Nock Investments to remain calm while investigations continue.
“The general public and all stakeholders will be kept informed of the next line of action”.
The BoG has affirmed its commitment to collaborate with law enforcement agencies in cracking down on illegal deposit-taking operations and all offenders shall be dealt with in accordance with the law.
“The Bank assures the general public of its commitment to promoting the integrity and stability of the financial system”.
“Kindly direct any enquiries and further information to the Other Financial Institutions Supervision Department of the Bank of Ghana. You may call telephone numbers 0302-666174-6,” the statement concluded.
More on Banks and Specialised Deposit-taking Institutions Act, 2016 (Act 930)
The Banks and Specialised Deposit-Taking Institutions Act, 2016, officially known as Act 930, is a significant legislative framework in Ghana that regulates the operations of banks and specialised deposit-taking institutions (SDIs).
Licensing of Banks and Specialised Deposit-Taking Institutions Deposit-taking business
4. (1) Subject to this Act, 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.
(2) A person that is not a body corporate formed under the laws of the country may, with the prior written approval of the Bank of Ghana, carry out a deposit-taking business in or from within the country.
(3) A person shall not propose to be a shareholder of a deposittaking microfinance institution unless that person is a citizen.
(4) The Bank of Ghana shall issue directives to govern the operations of persons exempted under subsection (2).
(5) For the purpose of this Act, deposit-taking business means the business of
(a) taking money on deposit and making loans or other advances of money; and
(b) financial activities prescribed by the Bank of Ghana for purposes of this definition.
Licensing authority of Bank of Ghana
5. The Bank of Ghana shall have the sole responsibility for
(a) the issuance of licences to banks and specialised deposittaking institutions;
(b) granting approval to foreign banks with respect to the
establishment of representative offices; and
(c) the registration of financial holding companies.
Requirement of a licence
6. (1) A person shall not accept a deposit from the general public or
carry on a deposit-taking business in or from within the country without a
licence issued in accordance with this Act.
(2) The Bank of Ghana may prescribe classes of liabilities that
constitute deposits.