Ghana's Finance Minister Challenges EU's Blacklisting of Ghana as Hypocritical

Strategic Insights -

Ghana's Finance Minister, Ken Ofori-Atta, has expressed strong sentiments towards the European Union's decision to blacklist the West African nation for non-compliance with money laundering and terrorism financing regulations. Ofori-Atta views the decision as hypocritical, particularly considering the recent international media reports revealing the involvement of HSBC Bank, a top European Bank, in dirty money laundering activities.

Key Takeaways:

  • Ghana's Finance Minister, Ken Ofori-Atta, has questioned the European Union's (EU) decision to blacklist the country for non-compliance with money laundering and terrorism financing regulations, calling it "hypocritical".
  • Ofori-Atta pointed out the double standard in the EU's decision, citing HSBC Bank's involvement in dirty money laundering activities as an example.
  • The EU blacklisted 12 countries, including Ghana, in October 2020, citing non-compliance with money laundering and terrorism financing regulations.
  • Ghana's Ministry of Finance has denied any wrongdoing and expressed readiness to engage with the European Commission to clarify the country's anti-money laundering and countering the financing of terrorism (AML/CFT) regime.
  • The EU agreed to a financing agreement of 87 million euros to support Ghana's response to the COVID-19 crisis.
  • HSBC Bank has been involved in several scandals, including helping to launder money for alleged criminals, ponzi schemers, and shell companies tied to looted government funds.
  • The bank's involvement in dirty money laundering activities dates back to at least 2012, when it admitted to U.S. prosecutors that it had helped dirty money flow through its branches worldwide.
  • HSBC has made efforts to improve its anti-money laundering program, investing over $1 billion in compliance initiatives since 2015.

Statistics:

  • Ghana has been placed under the watch of the European Union for certain money laundering activities.
  • $881 million controlled by the notorious Sinaloa cartel and other Mexican drug gangs was laundered through HSBC's branches worldwide.
  • HSBC processed at least $31 million between 2014 and 2015 for companies later revealed to have moved stolen government funds from Brazil.
  • Over $292 million was processed by HSBC between 2010 and 2016 for a Panama-based organization branded by U.S. authorities as a major money launderer for drug cartels.
  • Banks reported over 2 million suspicious activity reports to FinCEN in 2020, more than their agents could hope to read.

Sources:

  • "Ghana Placed on European Union's Blacklist" by The Herald (October 1, 2020)
  • "EU lists 12 countries on blacklist for money laundering" by Reuters (May 7, 2020)
  • "HSBC embarks on a multi-year journey to overhaul its ability to combat financial crime" by HSBC (2020)
  • "The FinCEN Files: How HSBC's bank in Hong Kong played a key role in keeping dirty money flowing" by International Consortium of Investigative Journalists (ICIJ) and BuzzFeed News (2020)