The Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has warned bank staff involved in fraudulent collateral arrangements that they will face severe disciplinary action as the central bank intensifies efforts to safeguard the integrity of the banking sector.

Speaking at a meeting with Managing Directors and Chief Executives of banks, Dr. Asiama expressed concern over increasing cases of fraudulent land title documentation and forged ownership records being used to secure credit facilities.

According to him, the Bank of Ghana's supervisory work has uncovered growing fraud risks linked to third-party collateral arrangements, with some properties being pledged without the knowledge of their legitimate owners.

"The Bank has observed troubling instances involving fraudulent land title documentation which are being used to support credit applications. Additionally, our supervisory work has identified growing fraud risks associated with third-party collateral arrangements"

 "Properties have been pledged in some instances without the knowledge of legitimate owners. Ownership documents have been forged and consent letters have been falsified," he revealed.

Dr. Asiama warned that the consequences of such misconduct extend beyond individual transactions and pose risks to the entire financial system.

"The implications are very severe. When collateral cannot be legally enforced, loan recoveries are compromised, balance sheets are weakened and public confidence is undermined," he stressed.

The Governor subsequently directed bank executives to strengthen internal controls and ensure strict compliance with due diligence procedures.

"You have to act decisively. You have to help contain the strain. Banks must formalize robust policies governing third-party collateral. You must strengthen due diligence procedures. You must enforce strict verification standards"

"You must address control weaknesses and you must take decisive disciplinary action against staff, any staff found culpable in such misconduct," he stated.

Dr. Asiama said the fight against fraud requires strong leadership from bank management and a culture of accountability across all institutions.

The warning forms part of the Bank of Ghana's broader regulatory reform agenda aimed at strengthening governance, risk management and public confidence in the banking sector.

He emphasized that protecting the credibility of the financial system remains critical to sustaining economic growth and maintaining financial stability.