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funds related to money laundering. More importantly,
while the FIC has relayed information on hundreds of bank
accounts suspected to be used for money laundering to
EOCO, and the Economic and Financial Crimes Court
(EFCC) has not authorized their freezing, and the lack of
political commitment and complicity of state officials
has prevented prosecution of the suspected money
launderers. 115 According to the Anti-Money Laundering
law, when accounts are frozen, the decision can be
appealed after one year; yet, accounts are often ‘unfrozen’
after one week. 116
As noted by interviewees, the EFCC does not have its own
budget; t<strong>here</strong>fore, its ability to try money-laundering
cases and deliver timely judgements is hampered by
serious resource and capacity constraints. 117 Not only
has this resulted in an increase in money laundering and
other criminal activities, it also led to Ghana being placed
under review by the Financial Action Task Force (FATF)
in February 2012 for non-compliance with anti-money
laundering standards and failing to make “sufficient
progress in implementing its action plan.” 118 The country
was however, removed from the FATF’s list of high risk
countries later that same year after it enacted various
legislations to criminalize money laundering and fight the
crime.’ 119
In addition to the FATF framework, one of the biggest
concerns voiced by interviewees regarding the effective
implementation of anti-money laundering efforts relates
to the role that corruption plays in thwarting these
efforts. Public corruption itself serves as “a major source
of money laundering in Ghana, occurring mainly through
public procurements and the award of licenses,” and the
monitoring and effective implementation of the anti
115. Interview with senior judicial official, Accra, May 2012., op cit. During the interview, the
official told interviewers that he suspects some EOCO officers and staff at the Attorney-General’s
Department were colluding with suspected money launderers, resulting in non-prosecution of
cases. The interviewee also mentioned that he had decided not to authorize the freezing of any
more accounts.
116. Interview with law enforcement official, Accra, May 2012.
117. Ibid
118. The FATF also noted that moving forward, Ghana needs to: “i) adequately criminalize money
laundering and terrorist; ii) establish and implement adequate measures for the confiscation of
funds related to money laundering; iii) establish a fully operational and effectively functioning
Financial Intelligence Unit; and iv) establish and implement adequate procedures to identify and
freeze terrorist assets. See FATF Public Statement of 22 June 2012 and FATF Public Statement
of February 2012 at http://www.fatf-gafi.org/documents/repository/fatfpublicstatement-
22june2012.html
119. Improving AML/CFT Global Compliance: On-going Process - 19 October 2012
http://www.fatf-gafi.org/countries/d-i/ghana/documents/improvingglobalamlcftcomplianceongoingprocess-19october2012.html
money-laundering legislative framework continues to
be “hindered by the very corrupt people being ‘checked’
t<strong>here</strong>by corrupting the ‘gatekeepers’ themselves.” 120 A
survey of professionals conducted in 2011 on money
laundering and financing of terrorism in Ghana already
captured many of these testimonies and reports, noting
that “[w]hile t<strong>here</strong> is palpable commitment to the fight
against money laundering and terrorist financing, lip
service is paid to bribery and corruption. This menace is
woven into the very fabric of society, and requires not just
committed individuals at the helm of affairs determined
to change the status quo, but a network of determined
groups and individuals.
Illegal Mining
Ghana is Africa’s second largest gold exporter. The sector
currently employs more than 100,000 Ghanaians to work
the shafts. Over the past decade, illegal mining, known
locally as ‘galamsey,’ has gained traction in Ghana. T<strong>here</strong> is
emerging evidence, although tenuous, that drug trafficking
and galamsey may be loosely linked in that miners in the
Ashanti region are increasingly using cannabis and cocaine
when working underground to numb the long working
hours, or to deal with nausea and claustrophobia. 121
The 2006 Minerals & Mining Act allows Ghanaians to
establish small-scale mining companies and spells
out penalties such as jail terms and confiscation of
equipment in the case of illegal mining, or the withdrawal
of mining licenses of artisanal operators who engage
foreign nationals in their mining operations. Despite
these provisions, galamsey is widespread throughout
the country and is currently receiving much attention
due to the damage it is causing to the environment and
agriculture in general, and due to perceptions that illegal
miners are increasingly using drugs and arms to facilitate
their activities. 122 Galamsey is particularly acute in mining
towns such as Tarkwa, Obuasi, and Konongo in the
Western and Ashanti regions respectively, and is provoked
120. Quaye, Robert and Coombs, Hugh (2011).. The Implementation of Anti-Money Laundering,
Terrorist Finance and Corruption Laws in Ghana, International Journal of Governmental Financial
Management, 50-59.
121. Interview with law enforcement officials, Kumasi, April 2012. This practice is particularly
prevalent in Konongo in the Ashanti region.
122. Interview with mining workers, Axim Road, April 2012; Interviews with law enforcement
officials, Kumasi, op cit.
113
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