Resetting FIC: What to expect of the Financial Intelligence Centre under Kwadwo Twum Boafo
The victory of President John Dramani Mahama and the National Democratic Congress (NDC) in the 2024 election was anchored on the promise to RESET GHANA AND RECOVER ALL LOOT presumably appropriated by members of the previous government.
The ‘Reset Ghana’ and the Operation Recover All Loot (ORAL) agenda were up there as the two most popular refrains that delivered the 2024 elections for President Mahama and the NDC.
While it is early days, President Mahama is walking the talk as his appointments have reflected a commitment towards stemming the downward spiral of the country’s fortunes and firmly placing it on the path towards success from the get-go.
One such appointment, which reflects the desire of President Mahama to achieve a wholistic turnaround in every facet of the country, is the appointment of Albert Kwadwo Twum Boafo, as the Acting Chief Executive Officer of the Financial Intelligence Centre (FIC).
Why Kwadwo Twum Boafo’s arrival is timely
In the statement announcing his appointment, the presidency described Kwadwo Twum Boafo as a "Civil Engineer, Finance expert, and former Chief Executive of the Ghana Free Zones Authority between 2009 and 2017.
"He holds a BEng in Materials Engineering from the University of Wales, an MSc in Civil Engineering from the Rensselaer Polytechnic Institute, Troy, New York, and an MBA in Finance and Investment Analysis from Stetson University, Deland, Florida, USA,” the statement added.
While the description was elaborate and fitting of the man who is credited with implementing transformative and lasting initiatives at the Ghana Free Zones Authority, it did not capture the principled, result-oriented, resourceful, technologically-inclined, and anti-corruption credentials of Kwadwo Twum Boafo, who for the past three decades, has distinguished himself as a public servant of high repute. He is also a distinguished engineer who supervised oustanding engineering feats such as the construction of the Accra World Trade Center.
In Kwadwo Twum Boafo, the Financial Intelligence Centre is getting a leader with vast knowledge and experience in the financial intelligence landscape, international relations, and anti-corruption field to bring about the much-needed and touted reset by the government.
What is FIC?
The mention of the Financial Intelligence Centre of Ghana may sound puzzling and mystical to the uninitiated, but for those with knowledge of the money laundering and terrorism financing space, the centre is one of the country’s most crucial institutions.
Established in 2008 under Section 4 of the Anti-Money Laundering Act, 2008, FIC exists to perform a number of important roles in Ghana’s fight against money laundering, terrorism financing, and corruption, among others.
The FIC is the National Centre for the receipt and analysis of suspicious transaction reports and other information relevant to predicate offences of Money Laundering/Terrorist Financing and Proliferation Financing (ML/TF&P) and disseminating actionable intelligence to competent authorities.
The FIC also has the mandate to request additional information from Accountable Institutions and Designated Non-Financial Businesses and Professions (DNFBPs) in Ghana.
The DNFBPs include lawyers, accountants, notaries, auctioneers, religious bodies, non-governmental organizations, real estate developers or agents, the gaming sector, dealers in precious metals and precious stones, and dealers in motor vehicles.
The FIC is part of a global network and can access timely information on criminals transcending national borders.
FIC and the terrorism, anti-money laundering and corruption situation
FIC, since its establishment, has chalked commendable accomplishments but the ever-evolving and sophisticated nature of the landscape means there is much more to be done.
Shaped by both local and international factors, the money laundering, corruption, and terrorism space has become more complex, requiring the FIC to be innovative, resourceful, and extremely tactical in dealing with the very delicate and serious situations which have direct bearings on Ghana’s security and revenue management and utilization drive.
In the area of money laundering, Ghana has made some strides. Statista’s rating of the country’s money laundering and terrorist financing at 5.29 (in 2023) represents an appreciable improvement for Ghana. The removal of Ghana from the European Union’s (EU) list of high-risk third countries with strategic deficiencies in their Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) regimes was also a commendable fit for FIC and all institutions within the space.
While there is no apparent concern of terrorism financing through Ghana’s financial institutions, developments within the sub-region, such as the instability in the Sahel area and the emergence of terrorist groups, have heightened the need for institutions like FIC to liaise with allied organizations across the sub-region to deal with it.
The corruption issue is an area where FIC and most corruption agencies in the country have fallen behind drastically, needing immediate redemption, especially as corruption is one of the areas where the government of President Mahama is expected to focus.
It is no doubt that corruption has become pervasive in the country and the country’s 43rd ranking on the Corruption Perception Index in 2024 is further proof of the enormity of the job awaiting the FIC and other anti-corruption institutions in the country under the leadership of President John Dramani Mahama.
FIC and ORAL
The ORAL project is one of the most prominent, if not the most popular, of all the promises made by President John Dramani Mahama in the run-up to the December 7 elections.
That President Mahama set up a preparatory committee for ORAL before his administration could even take off speaks volumes of the priority the president attaches to the fight against corruption.
As evidenced in the case of the former Minister of Sanitation, Cecilia Dapaah, where the Office of the Special Prosecutor had reasons to suspect the illicit movement of finances and referred the case to the Economic Organized Crime Office (EOCO) for investigations, FIC under the leadership of Kwadwo Twum Boafo would be a key component in the country’s anti-corruption drive.
Under Twum Boafo, FIC’s financial monitoring protocols will be activated to probe the movement of suspiciously illicit funds from the country.
Beyond his expertise in finance and his adeptness with modern technological tools, Twum Boafo stands as an exemplary figure in the fight against corruption, having emerged unscathed from a state-sponsored investigation by the EOCO during the Akufo-Addo era.
FIC and terrorism in the sub-region
A stable democracy and a relatively thriving financial sector make Ghana a likely hub for terrorism financing in the sub-region.
In the wake of security situations in the Sahel region, the need for an effective FIC to liaise with anti-money laundering and anti-terrorism financing bodies such as the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA), a specialized institution of ECOWAS, is paramount.
Twum Boafo, a man with a wide range of human networks, can be relied upon to provide leadership in that regard.
FIC and money laundering
Despite the removal of Ghana from the European Union’s money laundering blacklist, concerns still exist that Ghana is becoming a centre for the movement of illicit funds.
Twum Boafo’s FIC must definitely work with agencies such as the Bank of Ghana, EOCO, and others to effectively deal with the situation and reduce it to the barest minimum.
Digitally-driven FIC
The full migration of FIC from a manually-based to technologically-based management of suspicious financial transactions commenced in 2016 under the Mahama government through the Strengthening Action Against Corruption (STAAC) program.
Since then, major steps have been taken to equip the FIC with the latest machines and software to deliver on the purpose for which it was established.
The complex and ever-evolving nature of the space requires continued upgrades of personnel, machines, and software to carefully monitor financial transactions and flag them where necessary.
FIC’s funding sources are mainly the government of Ghana and donor agencies, and Twum Boafo’s extensive network and lobbying abilities will come in handy.
