BoG Cautions Microfinance Institutions

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The Bank of Ghana is warning the public to desist from engaging financial institutions offering unrealistic interests and returns.

According to sources close to the Bank of Ghana, most of these institutions are even not licensed by the Central Bank.

The Bank of Ghana is embarking on this move to warn the public because of how most of these financial institutions are springing up all over the metropolis and other parts of the country.

Joy Business has learnt that most of these institutions although not licenced by the BoG, are taking deposits from the public, offering them very high interest rates, only to fold up when they can no longer sustain the demands of depositors.

The Bank is also warning the public against some of these financial institutions that are ostensibly operating as fun clubs, but taking deposits from its members.

Most of these institutions sources say are operating in the northern and western parts of the country.

The Bank is therefore asking the public to only deal with financial institutions that are licensed by the central bank, which they can access at the Bank of Ghana website.

Sources say most of these institutions are being used as conduits for money laundering, the very reason BoG is working with a financial intelligence centre, to clamp down on them.

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