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The Bank of Ghana (BoG) has issued a stern directive to all banks, prohibiting the photocopying of Ghana Cards for customer verification during banking transactions. Instead, banks are required to utilize biometric verification systems directly linked to the National Identification database to authenticate identities. This directive, in line with the National Identity Register Regulations, 2012 (L.I. 2111), aims to enhance security and reduce the risks associated with outdated identity verification methods.
The BoG highlighted that photocopying Ghana Cards poses significant security risks. Deputy Head of the Financial Integrity Office at BoG, Mr. Ashitei Trebi-Ollennu, stated, “We have never said that banks should photocopy Ghana Cards. Photocopying leaves room for fraud and compromises the integrity of transactions.” By allowing physical copies of identification documents, banks expose themselves to potential identity theft and fraudulent activities. Photocopies can be easily manipulated, creating loopholes for financial crimes.
The Shift to Biometric Verification
The new directive mandates real-time biometric verification, which involves authenticating a customer’s identity using unique biological traits such as fingerprints, facial recognition, or iris scans. This method is directly integrated with the National Identity Register (NIR), providing immediate validation of a person’s identity. The benefits of biometric verification include;
Preventing Identity Theft: Eliminates the risk of impersonation by ensuring that only the account holder can access their financial information.
Enhancing Transaction Security: Offers a higher level of security than manual or paper-based verification methods.
Ensuring Compliance: Aligns Ghana’s financial sector with national and international standards for secure identity management.
The directive was reinforced during a stakeholder engagement in Accra, organized by Identity Management Systems II (IMS II) Ltd. in collaboration with the National Identification Authority (NIA). Themed “Protect Every Transaction with Biometric Verification,” the event brought together key stakeholders including the Bank of Ghana, the Ghana Association of Banks, the NIA, and representatives from all 25 universal banks in Ghana.
James Cantamantu-Koomson, Executive Director of IMS II Ltd, emphasized the paradigm shift in identity management, noting, “The way we do things is changing. Identity is at the centre and the engine of our financial system.” He underscored the power of the NIA’s biometric database as a critical asset for Ghana.
The NIA’s Head of Legal Directorate, Teresa Eson-Benjamin, reiterated the legal mandate that establishes the Ghana Card as the sole form of identification for banking transactions. This legal framework ensures that all financial institutions align with the biometric verification standards, reinforcing the legitimacy of the BoG’s directive.
During the engagement, banks provided feedback on improving the exchange of information and streamlining verification processes. The collaboration between the BoG, banks, and the NIA highlighted the shared goal of enhancing efficiency and security within the financial sector.
Key figures in attendance included Mr. John Awuah, CEO of the Ghana Association of Banks (GAB), Audrey Mireku (Banking Operations, Risk & Cybersecurity), and Ms. Naa Welbeck (Head of Supervision Unit under the Financial Integrity Office of the BoG). Their presence underscored the importance of a unified approach to implementing biometric verification.
