The Bank of Ghana has issued additional Know Your Customer, KYC, guidelines to banks and savings and loans companies operating in that country. This policy, which becomes effective from September 1,2008 became necessary following the introduction of the e-zwich common platform and biometric smartcard, and the passage of Ghana’s anti-money laundering and credit reportingacts. From September, all new personal customers of banks and savings and loans companies must be issued with an e-zwich smartcard as part of the KYC process. Also, e-zwich smartcards must be issued to all existing personal customers by December 31, 2008 as part of KYC procedures.
Under the new guildelines, account opening procedure for people who engage in low- value transactions below GH 10,000 cedi may not require proof of residence such as a utility bill, unless where the bank considers it necessary.
The use of e-zwich smartcards, the bank said, will eliminate identity fraud in the banking system, especially as the fingerprints of individual customers on the e-smartcards are unique.