Page 8 - Bullion World Volume 4 Issue 1 January 2024

Bullion World | Volume 4 | Issue 1 | January 2024

Legal and Regulatory Requirement

for the Export of Gold from Ghana;

The Need For Due Diligence

Mr David Yaw Danquah, Managing Director, Legalstone Solicitors

The same,

yet so different.

Mr David Yaw Danquah

Legalstone Solicitors verifying the licensing of local entities and understanding

Ghana possesses abundant natural resources, all factors that may impact the transaction.
particularly gold, which has played a crucial role in the In Ghana, individuals need a license to buy and deal
country's development. The stable economy and rich with minerals, and the export of gold requires a license
resources, especially gold, have attracted foreign entities under the Minerals and Mining Act, 2006 (Act 703). The
to engage in business partnerships for the export of Minister, in consultation with the Minerals Commission,
these resources. However, caution is advised due to the can issue licenses to suitable persons for buying and
presence of unscrupulous entities posing as licensed dealing in specified minerals.
gold buyers.
The Minerals Commission has provided guidelines for
To address this issue, it is essential for foreigners, the export of gold in Ghana, including notifying the
whether individuals or companies, to conduct due PMMC two working days before export, submitting
diligence before engaging with local Ghanaian entities gold ore for assay, and following specific procedures for
for gold purchase and export. This is a regulated documentation and sealing. Licensed Gold Exporters
industry governed by institutions such as the Minerals must submit monthly returns to the Minerals Commission
Commission, the Ministry of Land and Natural and adhere to a withholding tax of 1.5% along with other
Resources, and the Precious Mineral Marketing statutory fees.
Company (PMMC).
Foreign entities engaging in gold export business in
PMMC, established in 1963, operates as the Ghana are strongly advised to have legal representation.
government's assayer, with functions including grading, The legal representative should conduct due diligence on
assaying, valuing, processing, buying, and selling the Licensed Gold Exporter, provide professional advice
precious minerals. Due diligence should be focused on on regulatory changes, and ensure that the transaction

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