The Ghanaian apex bank, Bank of Ghana (BOG), has listed 10 unapproved Money Transfer Organisations (MTOs) operating illegally within the country's international transfer/remittance and forex market.
The apex bank stated that any institution or individual that wants to operate business dealing with foreign exchange must obtain an operating licence under the section 3.1 and section 15.3 of the Foreign Exchange Act, 2006 Act 723.
The sections stated:
Section 3.1: No individual or entity may conduct foreign exchange transactions without obtaining a license as stipulated by this Act.
Section 15.3: All foreign exchange transfers, whether into or out of Ghana, must be processed through a licensed money transfer operator or another authorized dealer.
The bank is intensifying oversight of foreign exchange operations in Ghana to ensure only legal and approved MTOs operate in the country. The bank has mandated that only authorized entities can facilitate international transfers and also threatened to impose strict penalties for any institution or individual that violate this rules.
The financial companies blacklisted by Bank of Ghana are Nairagram, I-Transfer, Hurupay, Eversend, IZI Send, ACE Money Transfer, Remit Union, Remit Home, Roze Remit, and Monty Global. The regulator' intensified oversight is for purpose of enforcing compliance, and to mandate that all cross-border transfers to or from Ghana be processed through authorized dealers.
According to a statement released by the bank on Friday, June 27, regarding the matter, the bank urge the general public, banks, Dedicated Electronic Money Issuers (DEMIs), and Enhanced Payment Service Providers (EPSPs) to refrain from engaging with the blacklisted entities. The bank threatens that anyone who violate this rule will face strict penalties.
The statement outlines regulatory expectations and warnings for MTOs and other market participants under the Foreign Exchange Act, 2006 (Act 723). Part of the statement read:
Directive to Approved MTOs:
- Terminate Foreign Exchange Flows Through Partner Institutions Only: Approved MTOs (entities licensed to conduct money transfers) must channel all foreign exchange transactions (e.g., remittances, currency exchanges) exclusively through their designated partner institutions, which are likely authorized banks or financial entities approved by the Bank of Ghana. This allows us to track and trace transactions are processed through regulated and monitored channels.
- Strict Adherence to Guidelines: MTOs must fully comply with all operational regulations and guidelines set by the Bank of Ghana, such as licensing requirements, reporting standards, and anti-money laundering protocols.
Reminder to All Market Players:
- This notice is extended beyond MTOs to include other entities in the financial ecosystem, such as banks, Dedicated Electronic Money Issuers (DEMIs), and Enhanced Payment Service Providers (EPSPs). These "market players" are reminded to follow the same directives, particularly those related to using only licensed entities for foreign exchange transactions (as per Sections 3.1 and 15.3 of the Foreign Exchange Act, 2006).
Consequences of Non-Compliance:
- The statement warns that failure to comply with these directives will lead to severe penalties, including withdrawal of the license for any institution found in violation.
