The Bank of Ghana (BoG) has introduced tougher regulations targeting financial institutions and payment service providers involved in remittance services, following continued non-compliance with existing guidelines.
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In a notice signed by BoG Secretary Sandra Thompson, the central bank expressed concern over persistent breaches of the Foreign Exchange Act, 2006 (Act 723) and the Updated Guidelines for Inward Remittance Services.
Despite previous warnings, infractions have continued among banks, Dedicated Electronic Money Issuers (DEMIs), Enhanced Payment Service Providers (EPSPs), and Money Transfer Operators (MTOs).
Key Violations Identified:
- Using unapproved channels to terminate inward remittances
- Conducting FX swaps under the guise of remittance operations
- Handling remittance transactions for institutions without prior BoG approval
- Applying unauthorized foreign exchange rates
BoG has warned that institutions failing to comply risk termination of their remittance partnerships and administrative sanctions.
To enforce accountability, BoG emphasized that:
- All remittance funding must align with Section 7.1(c) of the guidelines
- Disbursements must be made from the Local Settlement Account, per Section 7.2(a)
- Pre-funding arrangements with settlement banks must follow Section 7.2(b)
Furthermore, all banks, DEMIs, and EPSPs are mandated to submit weekly reports per MTO. These reports must include:
- Daily transaction logs for individual inward remittances
- Daily totals of foreign exchange credited into Nostro accounts
Failure to meet these reporting requirements will constitute a regulatory breach under Section 42 of the Payment Systems and Services Act (Act 987) and Section 93(3)(d) of Act 930, and will attract strict penalties.
