Ghana
This report analyses the implementation of the AEOI Standard in Ghana with respect to the requirements of the AEOI Terms of Reference. It assesses the legal frameworks put in place to implement the AEOI Standard.
The methodology used for the peer reviews and that therefore underpins this report is outlined in Chapter 2.
Overall findings
AEOI legal framework
Ghana’s legal framework implementing the AEOI Standard is in place but needs improvement in order to be fully consistent with the requirements of the AEOI Terms of Reference. While Ghana’s international legal framework to exchange the information with all of Ghana’s Interested Appropriate Partners (CR2) is consistent with the requirements, its domestic legislative framework requiring Reporting Financial Institutions to conduct the due diligence and reporting procedures (CR1) has deficiencies significant to the proper functioning of elements of the AEOI Standard. Most significantly, deficiencies have been identified in Ghana’s enforcement framework.
Overall determination on the legal framework: In Place But Needs Improvement
General context
Ghana commenced exchanges under the AEOI Standard in 2019.
In order to provide for Reporting Financial Institutions to collect and report the information to be exchanged, Ghana:
Under this framework Reporting Financial Institutions were required to commence the due diligence procedures in relation to New Accounts from 1 January 2018. With respect to Preexisting Accounts, Reporting Financial Institutions were required to complete the due diligence procedures on High Value Individual Accounts by 31 December 2018 and on Lower Value Individual Accounts and Entity Accounts by 31 December 2019.
With respect to the exchange of information under the AEOI Standard, Ghana has the Convention on Mutual Administrative Assistance in Tax Matters in place, and activated the associated CRS Multilateral Competent Authority Agreement in time for exchanges in 2019.
Findings and conclusions on the legal frameworks
The detailed findings and conclusions on the AEOI legal frameworks for Ghana are below, organised per Core Requirement (CR) and then per sub-requirement (SR) as extracted from the AEOI Terms of Reference (see Annex C).
CR1 Domestic legal framework: Jurisdictions should have a domestic legislative framework in place that requires all Reporting Financial Institutions to conduct the due diligence and reporting procedures in the CRS, and that provides for the effective implementation of the CRS as set out therein.
Determination: In Place But Needs Improvement
Ghana’s domestic legislative framework is in place and contains most of the key aspects of the CRS and its Commentary requiring Reporting Financial Institutions to conduct the due diligence and reporting procedures, but it needs improvement in relation to the scope of Financial Accounts required to be reported (SR 1.2), and the framework to enforce the requirements (SR 1.4). Most significantly, Ghana’s legislative framework does not include rules to prevent circumvention of due diligence and reporting obligations and there are no sanctions on Account Holders and Controlling Persons for the provision of false self-certifications.
SR 1.1 Jurisdictions should define the scope of Reporting Financial Institutions consistently with the CRS.
Ghana has defined the scope of Reporting Financial Institutions in its domestic legislative framework in accordance with the CRS and its Commentary.
SR 1.2 Jurisdictions should define the scope of Financial Accounts and Reportable Accounts consistently with the CRS and incorporate the due diligence procedures to identify them.
Ghana has defined the scope of the Financial Accounts that are required to be reported in its domestic legislative framework and incorporated the due diligence procedures that must be applied to identify them in a manner that is largely consistent with the CRS and its Commentary. However, a deficiency has been identified. More specifically, Ghana does not specify the date as of when a Financial Institution needs to implement policies for the returning of overpayments, which is required in order for Depository Accounts due to not-returned overpayments to be treated as Excluded Accounts.
Ghana should amend its domestic legislative framework to require that Financial Institutions to implement policies and procedures with respect to limiting or returning overpayments from a specified date in order for Depository Accounts due to not-returned overpayments to be treated as Excluded Accounts.
SR 1.3 Jurisdictions should incorporate the reporting requirements contained in Section I of the CRS into their domestic legislative framework.
Ghana has incorporated the reporting requirements in its domestic legislative framework in accordance with the CRS and its Commentary.
SR 1.4 Jurisdictions should have a legislative framework in place that allows for the enforcement of the requirements of the CRS in practice.
Ghana has a legislative framework in place to enforce the requirements in a manner that is largely consistent with the CRS and its Commentary. However, deficiencies have been identified. More specifically, Ghana’s legislative framework:
does not include rules to prevent all Financial Institutions, persons or intermediaries from adopting practices intended to circumvent the due diligence and reporting procedures as required;
does not impose sanctions for the provision of a false self-certifications by Account Holders and Controlling Persons; and
does not include rules requiring Reporting Financial Institutions to keep records of self-certifications in accordance with the requirements.
These are key elements of the required enforcement framework and are therefore material to the proper functioning of the AEOI Standard.
Ghana should amend its domestic legislative framework to include rules to prevent all Financial Institutions, persons and intermediaries from adopting practices intended to circumvent the reporting and due diligence procedures, rather than just those on whom the AEOI Standard imposes an obligation.
Ghana should amend its domestic legislative framework to include sanctions on Account Holders and Controlling Persons for the provision of a false self-certification.
Ghana should amend its domestic legislative framework to require Reporting Financial Institutions to maintain records of self-certifications for at least five years from the deadline to report the information, rather than six years from the date when an account is closed.
CR2 International legal framework: Jurisdictions should have exchange relationships in effect with all Interested Appropriate Partners as committed to and that provide for the exchange of information in accordance with the Model CAA.
Ghana’s international legal framework to exchange the information is in place, is consistent with the Model CAA and its Commentary and provides for exchange with all of Ghana’s Interested Appropriate Partners (i.e. all jurisdictions that are interested in receiving information from Ghana and that meet the required standard in relation to confidentiality and data safeguards) (SRs 2.1 – 2.3).
SR 2.1 Jurisdictions should have exchange agreements in effect with all Interested Appropriate Partners that permit the automatic exchange of CRS information.
Ghana has exchange agreements that permit the automatic exchange of CRS information in effect with all its Interested Appropriate Partners.
SR 2.2 Such an exchange agreement should be put in place without undue delay, following the receipt of an expression of interest from an Interested Appropriate Partner.
Ghana put in place its exchange agreements without undue delay.
SR 2.3 Jurisdictions should ensure that the exchange agreements in effect provide for the exchange of information in accordance with the requirements of the Model CAA.
Ghana’s exchange agreements provide for the exchange of information in accordance with the requirements of the Model CAA.