Ghana Central Bank halts operations of eight unapproved money transfer organizations

Ghana’s central bank has taken decisive action by shutting down the operations of eight money transfer organizations (MTOs) for providing remittance services without regulatory approval.

The affected companies include LemFi, Wise, Transfer Go, PayPal’s Xoom, SendValu, Boss Revolution, Aza Finance, and Supersonicz.

The move comes following section 3.1 of the Foreign Exchange Act, 2006 (Act 723), which prohibits engaging in foreign exchange activities without a proper license. Section 15.3 of the Foreign Exchange Act further emphasizes that every foreign exchange transfer to or from Ghana must be conducted through a licensed entity authorized to carry out money transfer business.

In a notice issued by Ghana’s Central Bank, the public, commercial banks, dedicated electronic money issuers (DEMI), and enhanced payments service providers (EPSP) were warned against conducting transactions with the listed companies.

The notice also reminded approved MTOs to exclusively route their foreign exchange flows through their partner institutions and adhere strictly to all operational guidelines.

Remittances play a crucial role in providing foreign exchange to many African countries, including Ghana. According to World Bank data, remittance inflow to Sub-Saharan Africa witnessed an estimated 5.2% growth, reaching $53 billion in 2022.

SOURCE: DAILY MAIL GH