How To Acquire Gold Buyer License (Tier 2) Under The Gold Board Act

The establishment of the Ghana Gold Board (GoldBod) through the introduction of the Ghana Gold Board Act, 2025 (Act 1140) is momentous, and in a way, intended to promote value addition to our mineral sources, bolster national revenue through increase in foreign exchange and gold reserves.

The GoldBod is tasked to oversee all aspects of the trading and marketing chain of gold in Ghana, from buying, selling and export of gold and other precious minerals, to promoting value addition.

Act 1140 explicitly states that GoldBod is the sole regulatory authority to oversee all businesses in the gold trading and marketing industry. Thus, a license is now required for businesses or any related activity in the gold trading and marketing industry.

Section 27 of Act 1140 establishes the categories of licenses liable for an application under the Act. The various licenses include the following;

1. An Aggregation Licence
2. A Buying Licence
3. An Export Partnership Licence
4. A Refining Licence
5. A Storage Licence
6. An Importation Licence
7. A Transshipment License
8. A Transportation License
9. A Smelting License
10. A Fabrication License

The categories of licenses that can be applied for effective immediately are as follows:

1. Aggregator License
2. Self-Financing Aggregator License
3. Buyer License (Tier 1)
4. Buyer License (Tier 2)

Thus, this article is intended to shed light on how a Ghanaian preferably 18 years and above or a fully owned Ghanaian company can acquire a buyer license (Tier 2).

Acquisition of a Gold Buyer License (Tier 2)

A gold buyer license (tier 2) is a license required for the purchase of gold from a miner or tier 1 buyer with financing from the buyer or a licensed aggregator for onward sale to an aggregator.

License Requirements

1. Governance and Legal Requirements
   1. Company/ Business Particulars

Any person who wants to acquire this license must register their business with the Office of the Registrar of Companies at the Registrar General's Department and obtain company incorporation documents. The applicant shall in turn provide the following company particulars to the GoldBod;

• Name of company/business in full
• Other names used in the past
• Date of incorporation or registration
• Place of issue of certificate of incorporation or registration (reference no. of certificate, registered address, telephone contact, business or company's e-mail address)
• Directors' or sole proprietor's e-mail address & phone number
• Litigation disclosures
• A police report for a fit and proper test
• Disclosure of other business interests by the company/business, its directors and shareholders/proprietor
• Ghana card of Sole Proprietor or Directors, Accounts Officer, Operations Officer and Manager

It should be noted that applicants must attach a true certified copy of their certificate of incorporation or registration in addition to the above stated particulars. In addition, applicants must attach Form 3 and their Beneficial Ownership Profile from the Office of the Registrar of Companies.

2. Operational Requirements

An applicant shall have

• A minimum of 1 office in the country for gold buying purposes evidenced by a title deed, lease or tenancy agreement.
• Business operating permit, EPA permit etc. for offices.
• Adequate security of premises including alarm systems, fire extinguishers, vault, CCTV etc.
• Adequate assay equipment i.e. Balances, XRF, other assay facilities etc.
• Proposed buying regions and towns.

2. Financial Requirements

An applicant shall have

• Working Capital – A minimum working capital requirement of Ghc100,000.00 evidenced by a bank statement.
• Trade Capital – A minimum trade capital requirement of Ghc100,000.00 evidenced by financial statement and bank statement.
• Source of working capital/funds
• Valid Tax clearance certificate
• Valid SSNIT clearance Certificate

The fees and charges for Gold buyer licenses (Tier 2) is tabulated below;

It is instructive to note that an application for a gold buyer license (tier 2) must be accompanied by an application processing fee. Once final approval is granted, the applicant would be required to pay the license fee before the license will be issued. Also, licensed tier 2 gold buyers are required to pay an annual license renewal fee as stated above. All the above stated fees are payable by cheque or payment order to the GoldBod.

Terms and Conditions Associated With a Gold Buyer License (Tier 2)

a. Non-Transferability

Gold buyer licenses (Tier 2) are strictly non-transferable without prior written consent of the GoldBod.

b. Fit and Proper Criteria

All sole proprietors, partners, directors, managers, and shareholders (as applicable) shall, at all material times, satisfy the fit and proper requirements prescribed by the GoldBod.

Persons involved shall submit a valid police clearance certificate, disclose all existing business interests and affiliations, and declare any pending or concluded litigation to which they are or have been a party. Compliance with the fit and proper criteria shall be subject to periodic review and verification by the GoldBod.

c. Disclosure of Ownership

All licensees shall maintain and, upon request, furnish to the GoldBod complete and accurate records of their legal and beneficial ownership structure. This shall include previously submitted documentation on beneficial owners of the licensee.

It is mandatory for licensees to promptly notify the GoldBod in writing of any changes in their ownership, directorship, or key management personnel, and submit updated documentation as may be required by the GoldBod.

d. Transaction Receipts

A licensed tier 2 gold buyer is required to record all gold purchase transactions using official receipts as issued or prescribed by GoldBod. Each receipt shall contain all mandatory information as specified by the GoldBod, including but not limited to the weight, assay results, transaction value, and identity of the seller.

A duplicate copy of each receipt shall be retained by the licensee and preserved in a secure and retrievable manner for audit and inspection purposes. The licensee shall ensure that receipts are sequentially numbered and properly archived in accordance with GoldBod guidelines.

e. Reporting Obligations

Licensed tier 2 gold buyers shall prepare and submit to the GoldBod monthly transaction reports detailing all gold purchases, sales, assay results, and related activities conducted within the reporting period. Reports shall be submitted in the prescribed format and by the deadline specified by the GoldBod.

In addition, the licensee shall maintain accurate, complete, and verifiable records of all transactions, which shall be readily accessible for inspection and audit by the GoldBod or any other competent regulatory authority. Such records shall be preserved for a minimum period of five (5) years or as otherwise directed by the GoldBod.

f. Location Approval

Gold Buyer License (Tier 2) entitles the licensee to operate only in geographical areas (region, district and town) approved by the GoldBod. Licensed tier 2 gold buyers shall not operate in other geographical areas without the prior written approval of the GoldBod.

g. AML & Due Diligence

Licensed tier 2 gold buyers shall be subject to ongoing Know Your Customer (KYC), Customer Due Diligence (CDD), and Enhanced Due Diligence (EDD) obligations in accordance with the Anti-Money Laundering Act, 2020 (Act 1044), the Anti-Terrorism Act, 2008 (Act 762), and all relevant directives issued by the Financial Intelligence Centre (FIC), the Bank of Ghana, and the GoldBod. For this purpose, the licensee shall

• Establish and maintain robust internal control systems for identifying and verifying the identity of all its small-scale miners, sellers of gold, beneficial owners, and counterparties;

• Perform risk profiling of all gold dealers and apply enhanced due diligence for high-risk categories, including politically exposed persons (PEPs), their associates, and close family members;

• Monitor transactions on an ongoing basis to detect unusual or suspicious activity, and maintain records of such monitoring for audit;

• Submit Suspicious Transaction Reports (STRs) or Currency Transaction Reports (CTRs) to the FIC where required by law;

• Maintain updated KYC documentation and make such records available to the GoldBod, FIC, or any other competent authority upon request.

Non-compliance with KYC and due diligence obligations shall constitute a material breach of the license conditions and attract sanctions, including suspension or revocation of the license.

h. Prohibited Activities

Licensed tier 2 gold buyers shall not, under any circumstance, use or permit the use of the license for any illicit, fraudulent, or criminal purpose. This includes, but is not limited to, engaging in money laundering, financing of terrorism, smuggling, trade in conflict minerals, corruption, or any activity in contravention of Ghanaian law or international obligations to which the Republic of Ghana is a party.

Any such misuse of the license shall constitute a fundamental breach of the licensing conditions and shall render the license liable to immediate suspension or revocation by the GoldBod, without prejudice to any further civil, criminal, or administrative sanctions that may be imposed.

The GoldBod reserves the right to refer any such conduct to the appropriate law enforcement or regulatory authority for investigation and prosecution.

i. Premises Access

Authorized officers or representatives of the GoldBod shall have the right to enter and inspect any facility, office, or premises of the licensee at any time, with or without prior notice, for the purpose of monitoring compliance with the terms and conditions of the license, verifying operational standards, or conducting investigations.

Such access shall include, but not be limited to, physical inspection of storage areas, security systems, assay and weighing equipment, and any location where licensed activities are carried out. The licensee shall provide unhindered access to all areas, staff, and facilities as may be required during such inspections.

Obstruction, refusal, or interference with GoldBod officials in the lawful exercise of their inspection powers shall constitute a serious regulatory breach and may result in suspension or revocation of the license, and/or referral for prosecution under applicable law.

j. Records Access

Upon request by the GoldBod or any authorized regulatory authority, licensed tier 2 gold buyers shall promptly make available all books, records, documents, contracts, receipts, reports, and any other information deemed necessary for the purposes of audit, monitoring, compliance verification, or investigation.

Such documentation shall be provided in the form and within the timeframe specified by the GoldBod, and shall be accurate, complete, and up to date. This obligation applies whether the records are maintained in physical or electronic form.

k. Duration & Renewal Procedure

Gold buyer license (Tier 2) shall be valid for a period of twelve (12) months commencing from the date of issuance, unless earlier suspended or revoked in accordance with the provisions of these license conditions or applicable law.

An application for renewal of the license shall be submitted to the GoldBod not later than three (3) months after the date of expiry. The grant of renewal shall be conditional upon;

• the licensee's full compliance with all applicable laws, regulations, and directives issued by the GoldBod during the preceding license period;
• the timely submission of all required reports and records;
• the absence of any material breach or unresolved regulatory infraction; and
• the full payment of applicable renewal and related fees.

An application for renewal submitted beyond the prescribed three-month window shall be treated as a new application.

l. Pricing Obligation

Licensed tier 2 gold buyers shall at all times purchase and/or sell gold strictly at the official price determined and published by the GoldBod on its website or through any other authorized communication channel. It shall be the duty of the licensee to monitor and adhere to the prevailing GoldBod pricing schedule and ensure that all transactions are conducted in compliance therewith.

Any deviation from the prescribed pricing, whether by commission or omission, shall constitute a material breach of these license conditions.

m. Display of License

The licensed tier 2 gold buyer shall prominently display a valid copy of its license at all operational premises, in a location that is clearly visible to GoldBod officials, miners, and other relevant stakeholders. Upon request by any authorised officer of the GoldBod or other competent authority, the licensee shall promptly produce the original license for verification.

n. Grounds for Revocation

The GoldBod reserves the right to suspend or revoke the license where the licensee:

• Fails to comply with any term or condition of the license;
• Submits falsified, misleading, or fraudulent documents or information;
• Engages in conduct that poses a threat to public health, safety, the environment, or national security;
• Ceases operations or remains inactive for a prolonged period without authorization;
• Commits any act of financial impropriety or is declared insolvent;
• Obstructs regulatory inspections, fails to submit reports, or otherwise breaches the lawful directives of the GoldBod.

o. Revision of the License Terms

The GoldBod reserves the right to vary, amend, or revise these license conditions at any time, without prior notice to the licensee. Such amendments shall become binding upon publication on the official GoldBod website or dissemination through any other authorized communication channel. The licensee shall have a continuing duty to monitor such updates and ensure full compliance with all revised requirements.

p. Sanction for Breach

A breach of any of the terms and conditions set out, including the failure to maintain statutory clearances, provide accurate records, comply with operational, financial, or reporting obligations, or adhere to regulatory directives, shall attract appropriate administrative, civil, or criminal sanctions. Sanctions may include suspension, revocation, monetary penalties, or referral to the relevant enforcement authority, as determined by the GoldBod in accordance with applicable law.

Conclusion

Gold buyer licenses (tier 2) are granted by the Ghana Gold Board (GoldBod) in accordance with the Ghana Gold Board Act, 2025 (Act 1140). Applicants authorised to operate as licensed tier 2 gold buyers in the gold trading and marketing sector within areas approved by the GoldBod, are to comply with the regulations made under Act 1140, and all the conditions and all applicable GoldBod policies and directives.