Compliance bottlenecks in the trade system

By Michael Kofi Fosu

In Ghana’s modern banking landscape, the shift from paper-based manual clearing to sophisticated digital networks has been transformative. Yet a persistent tension remains: the faster real-time payment systems evolve, the more compliance functions act as a sudden, manual brake.

Compliance in Ghana is too often treated not as a facilitator of trade, but as an afterthought that delays transactions. This is particularly evident in cross-border trade, where fragmented compliance regimes and the withdrawal of correspondent banking relationships have contributed to an estimated US$7 billion trade finance gap.

Compliance as a Constraint

In many Ghanaian financial institutions, compliance still operates in silos. While payments can be initiated instantly via Mobile Money Interoperability (MMI) or GHQR, settlement frequently triggers secondary, disconnected processes.

Legacy systems continue to rely on “wet signatures” and physical document verification for instruments such as Letters of Credit. When these manual requirements collide with real-time digital payments, the result is a stop-start process that disproportionately affects SMEs.

There are also deeper structural concerns. Data architecture is not merely technical; it reflects governance and power dynamics. Those who control access policies—and determine what is corrected or escalated—can effectively enable or stall trade transactions.

Accountability remains another challenge. When payments are delayed due to compliance checks, responsibility is often diffused. Banks may point to regulators, while regulators cite fragmented data systems, leaving traders caught in uncertainty.

Digital Infrastructure as a Solution

Addressing this bottleneck requires a shift from workaround solutions to robust Digital Public Infrastructure (DPI) that embeds compliance directly into transaction processes.

MonetaGo’s Secure Financing system offers a practical example by integrating fraud prevention and compliance into the trade workflow.

Its approach includes:

• Duplicate financing detection:Using hashing technology, trade documents are assigned unique digital fingerprints, reducing the risk of multiple financing against a single invoice.
• Authentication from trusted sources:Instead of manual verification, the system draws on validated “golden sources”, such as maritime data for Bills of Lading, to confirm document authenticity in real time.
• Real-time data decoupling:A global registry enables banks to verify transactions without exposing sensitive competitive information, preserving confidentiality while ensuring compliance.

Implications for FX and Trade

The adoption of such infrastructure has direct implications for Ghana’s foreign exchange regime and broader trade ecosystem.

High foreign exchange spreads are often driven by risk premiums linked to fraud and compliance uncertainty. By reducing these risks, DPI can help narrow spreads and lower the cost of cross-border trade.

More importantly, embedding compliance within a single digital workflow enhances predictability. For exporters—particularly SMEs in regions such as Tamale—this could mean the difference between week-long settlement delays and near-instant payments.

A well-designed DPI also supports data sovereignty, allowing businesses to retain control over their trade data while enabling financial institutions to access verified information necessary for compliance.

From Bottleneck to Enabler

The transition is clear: from compliance as a barrier to compliance as an embedded enabler of trade.

Traditional banking systems rely on manual processes, fragmented verification, and reactive compliance checks. In contrast, DPI-enabled systems automate verification, reduce fraud risk, and support real-time decision-making.

By investing in digital public infrastructure, Ghana can move beyond static data repositories towards intelligent systems that actively support trade, strengthen financial integrity, and accelerate economic growth.

Michael Kofi Fosu is Chief Executive Officer of the International Trade Finance and Payment Consultancy (ITFP), a firm specialising in import and export trade finance, asset recovery, project financing and financial intermediation.

He is a registered member of the International Trade and Forfaiting Association (ITFA), Zurich, and is affiliated with the Financial Times and Global Trade Review in the United Kingdom. ITFP serves as Ghana’s gateway to global trade finance advisory services.

Mr Fosu also represents ITFP within ITFA.

Email: [email protected]

The post Compliance bottlenecks in the trade system appeared first on The Business & Financial Times.

Read Full Story