Introduction
Ghana’s relationship with gold is deeply rooted in its history. Long before independence, indigenous communities were engaged in gold extraction and trade, and the country’s mineral wealth was reflected in its former name, the “Gold Coast”. Today, gold remains one of Ghana’s most important economic resources and a major source of export revenue. In January 2026, the Gold Board reported that Ghana’s gold export earnings reached USD 20 billion in 2025, according to the Bank of Ghana’s Summary of Economic and Financial Data. This represented an increase of more than 200% over the previous year.[1]
The immense value generated by the gold industry, however, brings with it a range of risks. These risks are often encapsulated by the concept of the “resource curse,” whereby the abundance of natural resources creates opportunities for exploitation, corruption, and economic distortions.[2] Beyond these broader concerns, regulatory arbitrage and gaps in practical enforcement have created a fertile ground for unscrupulous persons seeking to exploit the weaknesses in the system, as well as the limited understanding many participants have of how gold transactions operate in practice.
The prevalence of informality within parts of the extractive sector, particularly in relation to the purchase and trade of gold, has prompted legislative intervention. One such intervention is the Gold Board Act, 2025 (Act 1140), which seeks to regulate aspects of the small-scale mining sector and establish a more centralised framework for the buying and selling of gold.
This article examines Ghana’s evolving legal framework for gold trading under the Ghana Gold Board Act, 2025 (Act 1140) and, importantly, the practical realities of operating within that framework. It considers who may lawfully participate in the gold trade, the principal licensing structures, the risks commonly encountered in gold transactions, and the due diligence that investors, buyers and other market participants should undertake before committing funds to a transaction.
The Ghana Gold Board Act, 2025 (Act 1140): Understanding the New Legal Framework
The legal regulation of gold trading in Ghana begins with the Constitution. Article 257(6) of the 1992 Constitution provides that every mineral in its natural state, whether found in, under or upon any land in Ghana, rivers, streams, watercourses and other areas within Ghana, is the property of the Republic of Ghana and is vested in the President on behalf of, and in trust for, the people of Ghana.[3] Consequently, no person can claim ownership of gold in its natural state except in accordance with the laws governing the exploitation and trade of mineral resources.
Building on this constitutional foundation, the Gold Board Act, 2025 (Act 1140) introduced a new regulatory framework for the trading and export of gold in Ghana. The Act establishes the Ghana Gold Board as the primary regulator of gold trading activities, with responsibility for overseeing the purchase, sale, trading and export of gold and other precious minerals.[4] The Board is further mandated to promote value addition, support responsible mining practices and facilitate the accumulation of gold reserves by the Bank of Ghana.[5]
Although the Ghana Gold Board now plays the central regulatory role in Ghana’s gold trading market, it operates within a broader regulatory ecosystem. The Minerals Commission continues to play a central role in regulating mineral rights, mining operations and the licensing of mining activities under the Minerals and Mining Act.[6] The Environmental Protection Agency (EPA) oversees environmental compliance and the issuance of environmental permits required for mining operations,[7] while the Bank of Ghana also plays an important role, particularly in relation to Ghana’s gold reserves, foreign exchange and the country’s broader monetary policy framework.
A central feature of Act 1140 is its licensing regime. The Act prohibits any person or entity from engaging in specified gold trading and marketing activities without first obtaining the requisite licence from the Ghana Gold Board.[8] The activities requiring authorisation include aggregation, buying, selling, assaying, refining, fabrication, importation, exportation, storage, transportation, shipment, transhipment and transit of gold and other precious minerals.[9] Licences are also required for value-addition activities undertaken within the sector.[10]
To give effect to this framework, the Act provides for several categories of licences corresponding to the various activities regulated by the Board. These include, among others, Aggregation Licences, Buying Licences, Refining Licences, Export Partnership Licences, Storage Licences, Importation Licences, Transhipment Licences, Transportation Licences, Export Licences and Fabrication Licences.[11]
Each licence category is subject to specific eligibility requirements, terms and conditions prescribed by the Gold Board which may include minimum capital requirements, infrastructure and operational standards, reporting and compliance obligations and restrictions on the activities that may be undertaken by the licensee.
The licensing regime is reinforced by significant penalties for non-compliance. A person who engages in a regulated gold business or related activity without the requisite licence commits an offence and is liable, upon conviction, to a fine of not less than GHS 600,000.00, imprisonment for a term of not less than five (5) years and not more than ten (10) years, or both.[12]
Who Can Participate in Ghana’s Gold Trade?
A central feature of the new regime is the restriction placed on foreign participation in Ghana’s local gold trading market. Specified local gold trading activities are reserved for Ghanaian citizens and wholly Ghanaian-owned entities, subject to the particular license category and requirements prescribed under Act 1140 and by the Gold Board.
Eligible applicants may apply to the Ghana Gold Board for a license in the prescribed form,[13] satisfy the applicable requirements[14] and pay the applicable fees.[15] Upon receipt of a completed application, the Gold Board is required to review the application within ten (10) days[16] and decide on whether to grant or refuse the licence within the statutory period prescribed by the Act.[17]
The restrictions on foreign participation in the local gold trading market do not mean that foreign persons are excluded from Ghana’s gold sector altogether. Foreign participation must, however, be structured strictly within activities permitted under the regulatory framework. Foreign investors should therefore ensure that any proposed purchase, financing, off-take, joint venture or other commercial arrangement does not amount, directly or indirectly, to participation in a local gold trading activity reserved for Ghanaian persons or wholly Ghanaian-owned entities. Separate regulatory pathways may apply to activities involving refined precious metals fabrication and other forms of value addition. Foreign-owned entities or entities with foreign participation should therefore assess the specific license applicable to their proposed activity rather than assume that eligibility to participate in one segment of the gold value chain permits participation in local gold trading generally.[18]
Where things begin to go wrong
Despite the existence of extensive legislation governing the extractive sector in Ghana, significant segments of the mining industry continue to operate informally. Unlicensed small-scale mining, commonly referred to as galamsey, remains an entrenched feature of Ghana’s mining landscape.
Scholarly commentary attributes this persistent informality to several structural and economic factors. Chief among these are the high cost and bureaucratic complexity associated with formalisation,[19] which deters participation in the formal regulatory regime. In addition, some writers identify what has been described as a “large-scale bias” in mining regulation, where legislative and policy frameworks are perceived to disproportionately favour large-scale mining operations at the expense of artisanal and small-scale miners.[20]
Although successive legislative interventions, including Act 1140, have sought to address these challenges, particularly through frameworks aimed at regularising and supporting small-scale mining activities,[21] the effectiveness of these reforms has been constrained by enforcement deficits. The effects of provisions made for small-scale mining in Act 1140 are yet to be seen. In practice, formalisation efforts have often been undermined by weak implementation and, in some instances, a lack of political will to enforce compliance. [22]
These challenges extend beyond mining operations into the downstream gold trading market. Research has identified Ghana’s gold sector as being exposed to illicit financial flow (IFF) risks, particularly in connection with artisanal, small-scale and informal mining, as well as weaknesses in the valuation and verification of gold exports. These vulnerabilities reinforce the importance of transaction-level due diligence, particularly where gold is sourced through multiple intermediaries.
The Anatomy of Typical Gold Scams
The following scenarios are fictionalised composites based on recurring patterns encountered in gold-related transactions. They are included for illustrative purposes only and do not describe or identify any particular client, individual or transaction.
Scenario One: The Relationship-Based Gold Transaction
Foreign investors are often drawn into Ghana’s gold market through seemingly legitimate commercial or personal relationships. In one recurring scenario, a foreign purchaser is informed by a person with whom he has developed a relationship that gold has been inherited or otherwise lawfully acquired in Ghana and is available for sale. He was presented with documentation purporting to evidence ownership of the gold in the person’s name, including legal stamps and correspondence with an individual introduced as a Ghanaian lawyer.
Relying on the apparent authenticity of the documents and the trust created by the personal relationship, the purchaser proceeds with the transaction. He is subsequently informed that further payments are urgently required to facilitate the lawful transfer of the gold into his name and to secure export clearance from Ghana. These payments are framed as legal and administrative costs necessary to comply with regulatory requirements under the applicable gold trading framework. Over time, however, he encounters repeated delays, shifting explanations, and escalating demands for additional funds, allegedly to resolve unforeseen hurdles.
The scheme eventually collapses when both the seller or their agent become unreachable, with explanations ranging from emergencies to communication difficulties. Subsequent independent verification may reveal significant indicators of fraud, including forged instruments, unverifiable regulatory documentation, or the absence of a purported lawyer from the official roll of legal practitioners in Ghana. By that stage, however, substantial funds may already have been transferred and recovery may be difficult.
Scenario Two- The Apparently Sophisticated Transaction
In another recurring scenario, a foreign purchaser is introduced, through intermediaries, to persons claiming to have direct access to licensed small-scale miners and the ability to supply gold at attractive prices. The purchaser may be presented with assay reports, company documents, licenses and other materials apparently demonstrating regulatory compliance.
Multiple intermediaries may then become involved in sourcing, transportation, assaying and regulatory clearance. The transaction begins to unravel when additional payments are demanded for logistics, regulatory approvals or other supposed clearance requirements. Subsequent verification may reveal that the purported supplier is not licensed to undertake the transaction, that documents have been altered or fabricated or that the gold cannot be traced to a lawful source.
The important lesson here is that sophisticated documentation does not, by itself, establish a legitimate gold transaction. Every material representation should be independently verified.
Understanding the Gold Board Trading Chain
One of the principal objectives of Act 1140 is to formalise the local gold trading sector by eliminating the informal channels through which gold has historically been traded. To achieve this, the Act establishes a centralised and tightly regulated trading framework that significantly restricts who may lawfully participate in the gold value chain. This section seeks to explain the trading framework and provide a guide for purchasers in the scenarios above.
Under the current regime, foreign persons are prohibited from directly participating in Ghana’s local gold trading market and must transact through the channels permitted under the Gold Board regulatory framework.
The Act further reinforces this regulatory framework by requiring every participant in the local gold trade to operate under the appropriate licence issued by the Gold Board. In addition, a Gold Board licensee may only purchase gold from the Gold Board itself, a licensed miner, or another person licensed by the Gold Board. Transactions outside this regulated supply chain are prohibited. Importantly, the mere possession of a Gold Board license does not authorize a licensee to transact with every participant in the market. The permissible source of gold, counterparty, financing structure and onward purchaser depend upon the particular category and conditions of the license held.
To regulate the various participants in the gold trading ecosystem, the Gold Board has established four categories of buyer licences, each tailored to a specific role within the gold supply chain.
- Buyer License (Tier 1)
A Tier 1 Buyer Licence authorises the holder to purchase gold exclusively from licensed miners using the buyer’s own funds for onward sale to a licensed Tier 2 buyer. Applicants must satisfy the prescribed working and trade capital requirements, demonstrate the lawful source of their funds and meet the applicable tax, social security and other regulatory requirements.[23] During the course of its operations, the licensee must produce a valid copy of its licence whenever requested by a licensed miner, a Gold Board official or another Gold Board licensee.[24]
- Buyer License (Tier 2)
A Tier 2 Buyer Licence authorises the holder to purchase gold exclusively from licensed miners or licensed Tier 1 buyers, using financing provided by the buyer or a licensed aggregator, for onward sale to an aggregator.[25] Applicants must satisfy the prescribed capital, corporate governance, beneficial ownership, tax, and social security requirements applicable to the license.
Applicants are further required to disclose the source of their funds and submit valid Tax Clearance and SSNIT Clearance Certificates.[26]
- Aggregator License
An Aggregator Licence authorises the holder to purchase and aggregate gold from licensed miners and licensed Tier 1 and Tier 2 buyers for onward supply to the Gold Board using seed financing provided by the Gold Board.[27] Applicants are subject to substantial capital, operational, financial security, and compliance requirements reflecting the aggregator’s position within the regulated supply chain.
- Self-Financing Aggregator Licenses
A Self-Financing Aggregator Licence similarly authorises the holder to purchase and aggregate gold exclusively from licensed miners and licensed Tier 1 and Tier 2 buyers for onward supply to the Gold Board.[28] The principal distinction here is that the licensee finances its trading activities from its own approved funding sources rather than Gold Board seed financing. Applicants must therefore demonstrate substantial independently secured trade and working capital together with compliance with the applicable operational requirements.
The aforementioned distinctions are commercially significant. A participant should never assume that the existence of a Gold Board license is sufficient evidence that the holder is authorised to undertake the proposed transaction. The precise scope and conditions of the license, including the persons from whom the holder may purchase and to whom it may sell, should be independently verified.
Pricing Requirements
The Gold Board requires every licensee to purchase and sell gold strictly at the official price determined and published by the Gold Board through its website or any other authorised communication channel.[29] Accordingly, every licensee has a continuing obligation to ensure that all transactions are conducted at the prescribed price and any departure from the official pricing constitutes a material breach of the licence conditions.[30]
Due Diligence: A licence is only the Beginning
All applicants for Gold Board licences, as well as off-takers dealing with the Gold Board, are required to successfully undergo Know Your Customer (KYC) and due diligence assessments conducted by the Gold Board in collaboration with the Bank of Ghana and the Financial Intelligence Centre.[31]
Application Fees
Every licence application must be accompanied by the prescribed application processing fee. Upon approval, the applicant is required to pay the applicable licence fee before the licence is issued, and each licence is also subject to the applicable renewal fees prescribed by the Gold Board from time to time.[32]
Every person seeking to participate in a gold transaction should undertake appropriate due diligence before committing funds or assuming contractual obligations. Verification of a counterparty’s Gold Board license should be the starting point and not the conclusion of that exercise. A prospective participant should confirm not only that the license is valid, but also that the particular license category authorises the proposed transaction and permits the counterparty to buy from, or sell to, the other participants involved.
Corporate identity, beneficial ownership, source of gold, assay documentation, banking details and the authority of persons acting for the counterparty should also be independently verified. Where regulatory fees, taxes, export charges or other governmental payments are said to be required, the existence and amount of those obligations should be independently confirmed with the relevant authority rather than relying solely on documentation supplied by an intermediary.
Conclusion: Where Law Reform Meets Commercial Reality
Ghana’s gold sector remains one of Africa’s most commercially attractive, but legally and operationally complex, commodity markets. Act 1140 represents a significant attempt to formalize the gold trading sector, establish clearer trading channels and strengthen regulatory oversight. Yet legislation alone cannot eliminate the risks arising from informality, fraud, misrepresentation and unlawful supply chains.
Against this backdrop, the lawful purchase and trade of gold in Ghana is not simply a matter of understanding the law, but of actively applying it to each transaction. Documentation is not a substitute for due diligence, and the existence of a license does not necessarily establish that a particular transaction is authorized under that license.
Ultimately, successful participation in Ghana’s gold market requires legal awareness, regulatory compliance and commercial caution in equal measure. Before funds are committed or gold changes hands, the parties, licenses, source of gold, transaction structure and applicable regulatory pathway should all be independently verified.
[1] Ghana Gold Board, ‘Ghana records US$20bn in gold export earnings in 2025, more than double 2024 level’ https://goldbod.gov.gh/ghana-records-us20bn-in-gold-export-earnings-in-2025-more-than-double-2024-level/ accessed 15 June 2026.
[2] Benjamin Damoah and Richard Boglo, ‘Resource curse and sociospatial implications of artisanal gold mining in Ghana’ (2026) Discover Environment https://link.springer.com/content/pdf/10.1007/s44274-026-00526-5.pdf accessed 15 June 2026.
[3] Constitution of the Republic of Ghana 1992, Article 257(6)
[4] Ghana Gold Board Act 2025 (Act 1140), An Act to establish the Ghana Gold Board to oversee, monitor and undertake the buying, selling and export of gold and other precious minerals, promote value addition to the gold and other precious minerals of the country, support responsible mining and the accumulation of gold reserves by the Bank of Ghana, generate foreign exchange and provide for related matters
[5] ibid
[6] Minerals and Mining Act 2006 (Act 703)
[7] Environmental Protection Act, 2025 (Act 1124)
[8] Ghana Gold Board Act 2025 (Act 1140), s 26 (1)
[9] ibid, s 26(2)
[10] ibid, s 26 (3)
[11] ibid, s27
[12] ibid, s26 (5)
[13] ibid, s 29(a)
[14] ibid, s29(b)
[15] Ibid, s 29(2)
[16] Ibid, s 30
[17] Ibid, s 31
[18] Ghana Gold Board, ‘Jewellery Fabrication Licence (Category C)’ https://goldbod.gov.gh/licensing/jewellery-fabrication-license-c/ accessed 15 June 2026.
[19] Gavin Hilson, Alexandra Hilson, Roy Maconachie, James McQuilken and Hamidou Goumandakoye, ‘Artisanal and small-scale mining (ASM) in sub-Saharan Africa: Re-conceptualizing formalization and “illegal” activity’ (2017) 83 Geoforum 80–90.
[20] ibid
[21] Ghana Gold Board Act 2025 (Act 1140), s 26
[22] Gavin Hilson, Alexandra Hilson, Roy Maconachie, James McQuilken and Hamidou Goumandakoye, ‘Artisanal and small-scale mining (ASM) in sub-Saharan Africa: Re-conceptualizing formalization and “illegal” activity’ (2017) 83 Geoforum 80–90.
[23] ibid
[24] ibid
[25] Ghana Gold Board, Buyer License (Tier 2) https://goldbod.gov.gh/licensing/buyer-license-tier-2/ accessed 14 July 2026.
[26] ibid
[27] Ghana Gold Board, Aggregator License https://goldbod.gov.gh/licensing/aggregator-license/ accessed
[28] Ghana Gold Board, Self-Financing Aggregator License https://goldbod.gov.gh/licensing/self-financing-aggregator-license/ accessed 14 July 2026.
[29] Ghana Gold Board, Press Release https://goldbod.gov.gh/press-release/ accessed 14 July 2026
[30] Ghana Gold Board, Self-Financing Aggregator License https://goldbod.gov.gh/licensing/self-financing-aggregator-license/ accessed 14 July 2026
[31] ibid
[32] ibid
BY; Diana Amoanimaa Yeboah Esq.
Disclaimer: This publication is for information purposes only and is not intended to constitute legal advice. If you require information on any matter discussed in this article, kindly reach out to the firm directly.
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