Dr. Ernest Addison, Governor of the Bank of Ghana
The Bank of Ghana (BoG) has issued a new outsourcing directive for banks, Specialized Deposit-Taking Institutions (SDIs), and financial holding companies, aimed at strengthening governance and risk management. Effective July 1, 2025, regulated financial institutions (RFIs) must comply or face a penalty of GHȼ12,000.
The directive specifies functions that require BoG approval before outsourcing and prohibits outsourcing critical roles, such as Board-level decisions, credit approval, compliance oversight, and risk management.
RFIs are also required to protect customer information, notify BoG of outsourcing arrangements, and conduct materiality assessments to classify core functions.
BoG’s directive seeks to mitigate risks by ensuring institutions retain control over strategic functions critical to their stability.