The Ghana Gold Board (GoldBod) has introduced a new trade financing framework aimed at strengthening accountability, improving risk management and ensuring the efficient administration of funds provided to licensed gold buyers under its Gold Purchase Financing Programme.
The new framework which is going into immediate effect outlines the process that Mandatory procedures will follow for Tier 2 Licensed Gold Buyers and other qualifying licensed gold buyers to gain access to GoldBod’s trade funding via the Aggregators.
The initiative is part of GoldBod’s overall goal of increasing transparency, financial control and sustainability in the formal gold trading industry in Ghana.
Under the revised framework, all eligible Tier 2 Licensed Gold Buyers are required to submit a formal application to an Aggregator, present a valid GoldBod Tier 2 Licence for verification and complete all Know-Your-Customer (KYC), due diligence and creditworthiness assessments before accessing financing.
Applicants in line with the directive are also required to sign a Trade Financing Agreement with the Aggregator which specifies the terms of financing, repayment commitments, reporting and compliance requirements. After which funds will only be released until the agreement is approved by the GoldBod.
GoldBod also aiming at safeguarding public funds has also introduced a security requirement under which funded buyers must provide an acceptable Bank Guarantee, Advance Payment Guarantee, Insurance Bond or other approved security depending on which, the security will be determined if it will cover between 10 and 50 percent of the approved financing amount.
The Board has also instructed all the beneficiaries of the Trade Financing Programme to formalise their transactions under the new regime by fulfilling all the outstanding obligations and closing their current trade financing accounts with Aggregators by August 1, 2026.
Failure to comply will result in their removal from the list of eligible Tier 2 Licensed Gold Buyers until all outstanding amounts have been fully settled.
GoldBod also outlined strict enforcement measures for defaulters with participants who fail to honour a first demand notice within 21 days risking suspension of their GoldBod Buyer Licence, while continued default after a final 30-day demand notice may result in criminal proceedings.
Additionally, the Board has introduced restrictions to prevent multiple financing arrangements. Funded Tier 2 Licensed Buyers will not be permitted to obtain financing from another funded Tier 2 Buyer, while Tier 1 Licensed Buyers may not receive GoldBod trade financing from more than three funded Tier 2 Licensed Buyers at any given time. Breaches of these provisions may attract regulatory sanctions, including the suspension or withdrawal of funding approvals.
GoldBod said the new framework is designed to strengthen governance, protect public resources and ensure that its Trade Financing Programme continues to support a transparent, responsible and financially sustainable gold trading ecosystem in Ghana.
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