Formal Enforcement Mechanisms and Informal Transactions

Abstract

Operators of informal transactions developed certain interest in the relaxed nature of the business as compared to formal transaction because of its controversial laid down procedures and probably, the cost involved. However, due to the relaxed nature of informal transactions, it could be envisaged that, the environment would develop faster since its not strictly regulated. This paper critically examines the legal process of enforcing financial transactions in Ghana and, in particular, how appropriate and applicable such enforcement mechanisms are to informal financial transactions. It also explores the interplay between formal and informal financial transactions. The main aim of this paper is to outline the legal implications of formal and informal enforcement mechanisms regarding exchanges within and between informal financial entities.

Keywords: informal finance, financial transactions, enforcement.