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Tier 1 is a mandatory basic social security scheme. The existence of any employee pension or superannuationscheme does not relieve a company of its statutory obligations under the Tier 1 scheme. Tier 2 is a mandatory fullyfunded and privately managed scheme. Tier 3 is a privately funded voluntary scheme. Social security contributionsare portable — that is, they can be transferred from one social security scheme in one country to that in anothercountry and must be paid in respect of both local and expatriate staff.Banking LawBanking SectorGhana’s banking sector is dominated by foreign-owned banks. There are approximately 26 commercial banks, ofwhich 15 are subsidiaries of foreign banks, with an estimated market share of 51 per cent of bank assets. Britishbanks dominate, but the combined share of banks from the African region, particularly from Nigeria, is larger. Thedomestic component of the banking system is dominated by state-owned banks (SoBs). The state has a controllinginterest in five banks, through direct and indirect shareholding by the government, the BoG, and the state-controlledSSNIT. The SoBs account for 29 per cent of the banking system assets — one of the highest in sub-Saharan Africa.The BoG is the regulator of the banking industry. To this end, the BoG promotes effective banking systems anddeals with all unlawful or improper practices of banks. The BoG also proposes and considers reforms of the lawsrelated to the banking industry. Presently, the minimum capitalization for the grant of a license for the operation of alocal commercial bank is GHC 60,000,000.Licensing RequirementsOnly corporate bodies registered in Ghana are granted licenses to set up commercial banks. Operating a bankingbusiness in Ghana without a license is an offense. The BoG receives applications for licenses and deals with allmatters relating to the issuance or refusal of licenses. Such applications must be accompanied by: The regulations of the corporate applicant; Details of persons, including their corporate affiliates, who will hold significant shares in the proposed bank andtheir certified financial positions; Particulars of the directors and key management personnel of the bank; and Feasibility reports, including a business plan and financial projections for the first five years of operations, as wellas evidence of the initial capitalization.The BoG is the custodian of state funds and generally operates as the government’s banker, managing the publicdebt and serving as the government’s adviser on fiscal matters.Legislative FrameworkForeign Exchange ActThe Foreign Exchange Act authorizes the BoG to license and regulate the foreign exchange business in Ghana. TheBoG thus nominates and grants licenses to banks, corporate bodies, or persons that it considers competent to engagein the foreign exchange business.