Ghana’s Central Bank Restricts Eight Money Transfer Organizations (MTOs) from Providing Remittance Services without Regulatory Approval
The Central Bank of Ghana has issued a directive prohibiting eight money transfer organizations (MTOs) from offering remittance services without regulatory approval. The listed companies include LemFi, Wise, Transfer Go, PayPal’s Xoom, SendValu, Boss Revolution, Aza Finance, and Supersonicz, as per a notice observed by Queek Geeks.
In the notice, the Central Bank cautioned the public, commercial banks, dedicated electronic money issuers (DEMI), and enhanced payments service providers (EPSP) against engaging with the mentioned entities. Ghana’s Foreign Exchange Act, 2006 (Act 723), Section 3.1, prohibits explicitly engaging in foreign exchange activities without the necessary license. Section 29.1 of the same Act stipulates that operating without a license may incur a fine “of not more than seven hundred penalty units or a term of imprisonment of not more than eighteen months or both.”
The notice from Ghana’s Central Bank emphasizes that approved MTOs must channel their foreign exchange transactions exclusively through their partner institutions and strictly adhere to all operational guidelines.
Remittances play a crucial role as a source of foreign exchange for many African countries. World Bank data indicates that remittance inflows to Sub-Saharan Africa experienced an estimated 5.2% growth, reaching $53 billion in 2022, compared to a 16.4% growth in the previous year.
