On March 29, 2025, the Parliament of Ghana passed the Ghana Gold Board Act, 2025 (Act 1140), which was assented to by the President on April 2, 2025. The Act established the Ghana Gold Board (also known as the “GoldBod”) as the sole entity authorized to license, oversee, and manage the export of all Artisanal and Small-Scale Mining (ASM) gold in Ghana.
The introduction of the Ghana Gold Board Act, 2025, aims to combat gold smuggling and illegal mining, strengthen state control over the mineral trade, and prevent the loss of national resources. The Act imposes stringent penalties for smuggling gold, increases the cost of illegal activities, and deters such behavior. Additionally, the Gold Board has enhanced its enforcement efforts. For instance, on April 29, 2025, the GoldBod security task force arrested three Indian nationals for attempting to smuggle gold. On May 14, the GoldBod and National Security apprehended multiple foreign nationals attempting to smuggle significant quantities of gold out of the country
BELOW IS A DETAILED ANALYSIS OF ACT 1140
Background and Legislative Intent
First and foremost, the Act has made significant inroads aimed at addressing prevailing and common industry issues. The gold trade in Ghana has long been informal, with widespread smuggling activities causing significant losses in national revenue and foreign exchange. It is estimated that regulatory gaps have cost the state over $1 billion annually in lost taxes, foreign exchange repatriation, and royalties. The Act aims to formalize the sector, enhance transparency, curb smuggling, and prevent revenue leakage.
Then the Act is projected to boost Foreign Exchange Reserves and stabilizing the currency. By centralizing gold exports under the Gold Board, more gold transactions will occur through formal channels, enabling the government to build reserves, stabilize the Ghanaian cedi, and strengthen the local currency.
The Act aims to align Ghana’s gold trade with global anti-money laundering (AML) and compliance standards, enhancing the country’s reputation in the international gold market and promoting sustainable development of the gold industry.
Key Provisions
The Act establishes the Gold Board as the sole legal entity authorized to buy, sell, assay, and export all ASM gold produced by licensed ASM operations in Ghana. It holds exclusive authority over the buying, aggregation, export licensing, assay certification, exporter approval, and export monitoring of ASM gold.
On the issue of licensing, the Act outlines the entire licensing process, requirements, validity period, renewal conditions, and penalties for violations. Licenses are granted to eligible applicants, including Ghanaian citizens and fully Ghanaian-owned companies, as well as foreign entities meeting specific criteria. Licenses cannot be transferred without the prior written approval of the Gold Board. The Gold Board may suspend or revoke licenses under certain circumstances, such as non-compliance with license terms or using forged documents in license applications.
The Act also deals with the regulation of gold trading activities. It mandates that all ASM gold exports must be processed through the Gold Board. Except for large-scale mining companies, no person or entity may export ASM gold without Gold Board authorization. Additionally, only the Gold Board or its licensed buyers, aggregators, or service providers may purchase or trade gold within Ghana. All gold transactions must be conducted in Ghanaian cedis, with prices based on the Bank of Ghana Reference Rate. The Act also imposes restrictions on foreign participation in local gold trading, requiring foreign entities to either apply for a Gold Board export license, register as an off-taker purchasing gold directly from the Gold Board, or form a joint venture with a Gold Board-approved Ghanaian aggregator.
There are also penalties for violations of the provisions of the Act. For instance, unauthorized gold trading or export activities outside the Gold Board system constitute criminal offenses. Offenders may face fines, imprisonment, or both. For instance, individuals transferring licenses in violation of regulations may be liable to a fine of no less than fifty thousand penalty units and no more than two hundred thousand penalty units, or imprisonment for no less than five years and no more than ten years, or both. The Gold Board may also revoke the licenses of such individuals.
Impact Analysis
The Act primarily has significant impact on the Gold industry as a whole. The Act helps formalize Ghana’s gold industry, transforming it from an informal to a formalized sector. This enhances the industry’s transparency and regulation, reduces smuggling and illegal mining activities, protects the legitimate rights and interests of legitimate miners and traders, and promotes the healthy and sustainable development of the gold industry.
By centralizing gold exports under the Gold Board, the government can strengthen its oversight of the gold sector, increase tax collection efficiency, and raise more revenue and royalties from gold exports. This will provide more financial resources for national infrastructure development and social programs. This is deemed impact on Government Revenue.
As gold is one of Ghana’s key export commodities, the Act is expected to increase gold export revenues in foreign exchange, boost Ghana’s foreign exchange reserves, enhance the country’s ability to repay foreign debts and import goods, stabilize and strengthen the Ghanaian cedi, and mitigate the currency depreciation pressures caused by factors such as gold smuggling.
However, the Act imposes stricter regulations on foreign gold traders’ activities in Ghana, requiring them to comply with the Gold Board’s licensing system and operational rules. While this increases the compliance costs and operational complexity for foreign traders, it also provides a more stable and transparent market environment, reducing risks associated with illegal trading activities and facilitating legal and compliant participation in Ghana’s gold market.
All in all, the Act aims to regulate the domestic gold market, standardize trading practices, and protect consumer rights. Consumers can purchase gold from licensed traders with greater confidence, reducing the risk of counterfeit or substandard products.
Transitional Arrangements
To ensure a smooth transition, the Gold Board allows individuals or companies holding valid Precious Minerals Marketing Company (PMMC) or ministerial licenses to continue trading and exporting gold until April 30, 2025. Starting May 1, 2025, all gold trading and exports must comply with the new Gold Board framework. Ghanaians and fully Ghanaian-owned companies whose licenses have expired or those wishing to enter the gold sector are encouraged to apply for Gold Board licenses starting April 22, 2025, either online or at the Gold Board Licensing and Regulations Office in Accra.
Criticisms and Concerns
The implementation of the Act may lead to short-term disruptions in the gold market, such as a reduction in market liquidity and price volatility, as market participants adjust to the new regulatory framework.
Additionally, the licensing process may involve complex procedures and stringent requirements, potentially posing challenges for some applicants. Additionally, the Gold Board’s operational efficiency and capacity to manage the gold sector could face tests.
While the Act aims to curb smuggling, there is a possibility that strict regulations may drive some illegal activities underground, increasing the difficulty of supervision and control.
Analysis of the penalties for smuggling gold under the Act
Under Section 65 of the Act, no person shall smuggle gold or facilitate the smuggling of gold out of the country. A person who contravenes this provision commits an offense and is liable on summary conviction to a fine of not less than five hundred penalty units and not more than one million penalty units or to an amount equivalent to five times the market value of the smuggled gold, whichever is greater, or to a term of imprisonment of not less than ten years and not more than twenty-five years, or to both.
There are also offenses related to the transportation and dealing of gold. For instance, if a person transports gold or gold mining products and alters, compromises, or tampers with the quantity or purity of the gold or products being transported, transports them without the necessary documentation and authorization, or diverts a shipment of gold or products to an unauthorized location, they commit an offense. Upon summary conviction, they may be fined not less than two hundred thousand penalty units and not more than five hundred thousand penalty units or sentenced to imprisonment for not less than five years and not more than ten years, or both. If the offense involves a vehicle, vessel, or aircraft used for the illegal transportation of gold or gold mining products, the Gold Board may seize and impound the means of transportation pending further legal proceedings.
On the purchase of gold, a person licensed by the Gold Board shall not purchase gold from the local gold trading sector in Ghana from anyone other than the Gold Board, a miner, or a person licensed by the Gold Board. A violation of this provision is an offense, punishable by a fine of not less than two hundred thousand penalty units and not more than five hundred thousand penalty units or imprisonment for not less than five years and not more than ten years, or both.
And particularly on the subject of hoarding of gold, the Act provides that no person shall hoard gold, except for personal or value storage purposes. A violation is an offense, punishable by a fine of not less than two hundred thousand penalty units and not more than five hundred thousand penalty units or imprisonment for not less than five years and not more than ten years, or both.
Other Enforceable Measures
According to Section 49 of the Act, the Gold Board, in collaboration with relevant institutions, may conduct random audits of gold service providers, deploy enforcement teams at strategic border points and export terminals, and utilize drone surveillance and AI-driven monitoring to detect illegal gold movements. The Gold Board may seize and confiscate smuggled gold and related assets under the following circumstances:
a.Gold is transported without the necessary documentation;
b.A gold service provider or any other person is found colluding with a foreign buyer to bypass regulatory oversight;
c.A gold transaction violates anti-money laundering and counter-terrorism financing laws.
Other Enforcement Powers of the Gold Board
If a person violates any provision of the Act or regulations made under the Act, the Gold Board may issue a warning to the violator, order the forfeiture of illegally obtained gold, issue a cease-and-desist order, apply to the High Court for an injunction to prevent ongoing violations or any other order to ensure compliance, suspend or revoke a license in accordance with the Act, or take any other action necessary to ensure compliance.
In conclusion, the establishment of the Gold Board represents a significant policy shift
with far-enhanced regulatory oversight in the gold trading sector. In ensuring full compliance with the Gold Board’s licensing framework, all industry actors are projected to become beneficiaries of a much stable and commercially viable ecosystem, aligning their individual operational goals with a robust national economy.
By Baron Dr. Kwame Nyampong