Banking and corporate governance expert Dr Richmond Akwasi Atuahene

Banking and corporate governance expert Dr Richmond Akwasi Atuahene has advocated the adoption of a principles-based regulatory framework in the domestic digital financial sector, arguing that such an approach is essential to balance innovation with robust consumer protection in a fast-evolving technological landscape.

In a detailed paper on Ghana’s digital financial ecosystem, Dr. Atuahene warned that the existing rules-based regulatory framework, while effective in certain contexts, is increasingly inadequate for addressing the complexities of financial technology (FinTech), mobile money, digital currencies and other emerging financial services.

“The challenge facing financial regulators today is not whether to regulate innovation, but how to do so in a manner that protects consumers without stifling growth,” he stated.

“Principles-based supervision offers a pragmatic solution by focusing on the outcomes of financial services – such as safety, transparency and fairness – rather than prescribing rigid methods of compliance,” Dr. Atuahene added.

The local digital financial sector has witnessed exponential growth in recent years, driven by widespread adoption of mobile money platforms, peer-to-peer lending and digital payment systems.

As of December 2024, BoG data show that mobile money platforms account for over 97 percent of digital transaction volumes in the country, with more than 59.7 million registered accounts and over four million mobile loans accessed by individuals previously excluded from formal banking systems.

This expansion, while transformative for financial inclusion, has also introduced new regulatory challenges including data privacy concerns, cybersecurity risks, digital fraud and market conduct issues.

According to Dr. Atuahene, these risks require a shift in regulatory posture – from a static, one-size-fits-all model to a dynamic framework that adapts to innovations without compromising essential regulatory goals.

Under principles-based supervision, regulators establish high-level objectives – such as protecting consumer data, ensuring fair treatment, or maintaining financial stability – and allow institutions to determine how best to meet these standards, subject to oversight.

This contrasts with traditional rules-based supervision, which relies on detailed, prescriptive requirements that may become obsolete as technologies change.

“FinTech and digital finance are defined by speed, scale and constant innovation. A rigid rulebook cannot anticipate or address every emerging scenario. Principles-based regulation empowers institutions to innovate responsibly while giving regulators flexibility that can respond to evolving risks,” Dr. Atuahene explained.

He stated that such a model does not mean an absence of rules. Rather, it enables a more nuanced regulatory environment where specific, codified rules govern high-risk areas – such as anti-money laundering and capital adequacy – while broader principles govern dynamic areas like product development, customer service and data governance.

This approach, he argued, also strengthens consumer protection. By placing the onus on institutions to act in the best interest of consumers and demonstrate compliance with broad ethical and operational standards, regulators can hold firms accountable in a more responsive and risk-aware manner.

“Principles-based supervision fosters a culture of responsibility and risk management within firms. It challenges them to not merely meet minimum standards but also internalise regulatory objectives as part of their business practices,” he noted.

Dr. Atuahene further recommended that the regulator expand its use of regulatory sandboxes – controlled environments for testing new financial innovations – and adopt regulatory technologies (RegTech) to enhance supervisory capabilities.

These tools, he said, will help bridge the gap between policy and practice by allowing regulators to monitor market developments in real time and intervene where necessary.

Citing international examples, he pointed to the United Kingdom’s Financial Conduct Authority and Indonesia’s financial services regulator as institutions that have successfully integrated principles-based regulation to manage digital finance. He called for Ghana to adopt a similar approach tailored to the country’s unique financial landscape.

He also proposed a hybrid model as a transitional step – combining the clarity of rules with the adaptability of principles – to ensure both regulatory certainty and flexibility. Such a model, he said, would be especially effective in areas like mobile money and digital lending where risks and opportunities are evolving rapidly.

With Ghana’s growing focus on digitalisation, including ongoing efforts to pilot a central bank digital currency (e-Cedi), Dr. Atuahene warned that regulatory inertia could undermine financial sector innovation and expose consumers to systemic risks. He urged regulators to take a proactive stance.

“The shift to a principles-based regime is not optional – it is essential if Ghana is to sustain the gains of financial inclusion, promote responsible innovation and maintain public trust in digital finance,” he remarked.

The call comes at a time when BoG is increasingly engaging with FinTechs through sandbox initiatives and payment systems modernisation.

Okaikwei Central MP, Patrick Yaw Boamah, has offered an assessment of the 2024 general elections, describing the outcome as a testament to the discernment and political maturity of the Ghanaians.

He noted that the results reflected the electorate’s awareness of the national mood and their ability to choose wisely when it matters most.

In an interview on Channel One TV on Monday, June 23, Mr Boamah conceded that although he firmly supported NPP’s Dr Mahamudu Bawumia, it became evident that the political atmosphere was not favourable for then governing party.

“The 2024 election also taught us a few things — that Ghanaians don’t make mistakes. At every material time, they know who they want to vote for,” he said.

The Okaikwei Central MP acknowledged that several internal and external factors had stacked the odds against the NPP.

“I am NPP. I would have loved Dr Bawumia to win, but the circumstances around the country, the factors — everything was against the NPP, except those of us who were in the party,” he remarked.

He added that many within the party foresaw the uphill task they faced: “Some of us knew we were facing a headwind and it was going to be a very difficult election for us.”

Despite the broader challenges confronting the NPP nationally, Mr Boamah highlighted that meticulous planning and targeted campaigning enabled him to retain his parliamentary seat.

“I put in place the right strategies to win. I knew by 7:30 pm on election night that I had won the election because I had my own system of calculating and collating results,” he explained.

He concluded by noting the importance of data-driven electoral strategy at the constituency level, saying: “By 8 p.m., I told my people to go to the centre.”

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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.

U.S. President Donald Trump said on Tuesday a ceasefire between Israel and Iran was now in place and asked both countries not to violate it, only hours after Iran launched waves of missiles, which Israel’s ambulance service said killed four people.

“THE CEASEFIRE IS NOW IN EFFECT. PLEASE DO NOT VIOLATE IT!” Trump said in a Truth Social post.

When Trump announced on Monday what he called a complete ceasefire to end a 12-day war, he appeared to suggest that Israel and Iran would have time to complete missions that were underway, at which point the ceasefire would begin in a staged process.

Witnesses said they heard explosions near Tel Aviv and Beersheba in southern Israel before Trump’s statement.

Israel’s military said six waves of missiles were launched by Iran and Israel’s national ambulance service said four people were killed in Beersheba, the first reported deaths in Israel since Trump announced the ceasefire.

Iran’s semi-official SNN news agency reported on Tuesday that Tehran fired its last round of missiles before the ceasefire came into effect.

A senior White House official said Trump had brokered a ceasefire deal in a call with Israeli Prime Minister Benjamin Netanyahu and Israel had agreed so long as Iran did not launch further attacks.

“On the assumption that everything works as it should, which it will, I would like to congratulate both Countries, Israel and Iran, on having the Stamina, Courage, and Intelligence to end, what should be called, ‘THE 12 DAY WAR’,” Trump wrote on his Truth Social site.

An Iranian official earlier confirmed that Tehran had agreed to a ceasefire, but the country’s foreign minister said there would be no cessation of hostilities unless Israel stopped its attacks.

Abbas Araqchi said early on Tuesday that if Israel stopped its “illegal aggression” against the Iranian people no later than 4 a.m. Tehran time (0030 GMT) on Tuesday, Iran had no intention of continuing its response afterwards.

“The final decision on the cessation of our military operations will be made later,” Araqchi added in a post on X.

Israel, joined by the United States on the weekend, has carried out attacks on Iran’s nuclear facilities, after alleging Tehran was getting close to obtaining a nuclear weapon.

Iran denies ever having a nuclear weapons program but Supreme Leader Ali Khamenei has said that if it wanted to, world leaders “wouldn’t be able to stop us”.

Israel, which is not a party to the international Non-Proliferation Treaty, is the only country in the Middle East believed to have nuclear weapons. Israel does not deny or confirm that.

Qatar’s Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani secured Tehran’s agreement during a call with Iranian officials, an official briefed on the negotiations told Reuters on Tuesday.

U.S. Vice President JD Vance, Secretary of State Marco Rubio and U.S. special envoy Steve Witkoff were in direct and indirect contact with the Iranians, a White House official said.

Neither Iran’s U.N. mission nor the Israeli embassy in Washington responded to separate requests for comment from Reuters.

Hours earlier, three Israeli officials had signaled Israel was looking to wrap up its campaign in Iran soon and had passed the message on to the United States.

Netanyahu had told government ministers whose discussions ended early on Tuesday not to speak publicly, Israel’s Channel 12 television reported.

Markets reacted favorably to the news.

S&P 500 futures rose 0.4% late on Monday, suggesting traders expect the U.S. stock market to open with gains on Tuesday.

U.S. crude futures fell in early Asian trading hours on Tuesday to their lowest level in more than a week after Trump said a ceasefire had been agreed, relieving worries of supply disruption in the region.

EARLY NOTICE

Earlier on Monday, Trump said he would encourage Israel to proceed towards peace after dismissing Iran’s attack on an American air base that caused no injuries and thanking Tehran for the early notice of the strikes.

He said Iran fired 14 missiles at the U.S. air base, calling it “a very weak response, which we expected, and have very effectively countered.”

Iran’s handling of the attack recalled earlier clashes with the United States and Israel, with Tehran seeking a balance between saving face with a military response but without provoking a cycle of escalation it can’t afford.

Iran’s attack came after U.S. bombers dropped 30,000-pound bunker-buster bombs on Iranian underground nuclear facilities at the weekend, joining Israel’s air war.

Much of Tehran’s population of 10 million has fled after days of bombing.

The Trump administration maintains that its aim was solely to destroy Iran’s nuclear program, not to open a wider war.

“Iran was very close to having a nuclear weapon,” Vice President JD Vance said in an interview on Fox News’ “Special Report with Bret Baier.”

“Now Iran is incapable of building a nuclear weapon with the equipment they have because we destroyed it,” Vance said.

Trump has cited intelligence reports that Iran was close to building a nuclear weapon, without elaborating. However, U.S. intelligence agencies said earlier this year they assessed that Iran was not building a nuclear weapon and a source with access to U.S. intelligence reports told Reuters last week that that assessment hadn’t changed.

In a social media post on Sunday, Trump spoke of toppling the hardline clerical rulers who have been Washington’s principal foes in the Middle East since Iran’s 1979 Islamic Revolution.

Israel, however, had made clear that its strikes on Evin prison – a notorious jail for housing political prisoners – and other targets in Tehran were intended to hit the Iranian ruling apparatus broadly, and its ability to sustain power.

DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.

DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.