The Bank of Ghana (BoG) has directed banks to strengthen the independence and effectiveness of their fraud management functions, including giving fraud units direct and unrestricted access to managing directors and chief executive officers.

Governor Dr Johnson Asiama said the central bank has received concerns from the Ghana Association of Banks about the different ways banks currently position their fraud functions.

Speaking at a meeting with the heads of banks, Dr Asiama described fraud as a significant risk requiring serious attention from the banking sector.

He said banks must strengthen fraud risk management through effective policies and controls designed to prevent, detect and deter fraudulent activities.

"The fraud function should be appropriately positioned with direct and unrestricted access to the managing director or chief executive officer,” Dr Asiama said.

According to him, the arrangement is necessary to ensure the independence and effectiveness of fraud management functions within banks.

He also directed banks to ensure that personnel responsible for fraud management have the requisite skills, professional certifications and technical competence.

The directive comes as the central bank continues to intensify its supervisory focus on risks emerging from the growing digitalisation of financial services.

Dr Asiama said the BoG is also paying increased attention to cyber technology and fintech-related risks, noting that while digitalisation has delivered significant benefits to the financial sector, it has also increased operational and cyber risks.

The central bank is therefore working with industry on implementation of the Cyber and Information Security Directive and will strengthen supervisory expectations around technology, customer-fund safeguarding and third-party risks.