The Bank of Ghana is urging all licensed financial institutions to carry out annual fit and proper assessments for their board members, chief executives and other key managers as part of efforts to strengthen governance in the banking and finance sector.
In a recent question‑and‑answer session on the new Fit and Proper guidelines for Accountable Institutions, the central bank said these checks should not only be done before the appointment of directors or senior personnel, but also each year to ensure continued suitability.
The Bank of Ghana explained that a proper assessment includes a thorough due diligence review and verification of all significant information through independent sources. Institutions are expected to collect and examine documents such as application letters, updated CVs, tax clearances, certified financial statements, certificates of academic and professional credentials, police reports and other relevant records.
Under the new approach, boards must appoint qualified leaders, develop a strong internal fit and proper policy, and oversee ongoing evaluation of governance arrangements. Key managers are responsible for screening middle and lower management, reporting results to the board, and making sure heads of control functions such as Risk, Compliance, Anti‑Money Laundering and Internal Audit are assessed annually.
The Bank of Ghana warned that anyone found not fit and proper could be prevented from holding shares, directorships or senior roles for up to 10 years, and their appointment may be rejected or revoked by the regulator.
The move is part of broader efforts to improve corporate governance, transparency and accountability in Ghana’s financial sector, ensuring that institutions are led by competent and trustworthy individuals at all times