Eight Money Transfer Organizations Operating Illegally in Ghana
The Bank of Ghana has identified eight money transfer organizations (MTOs) operating in Ghana’s remittances and forex markets without its approval, breaching the Foreign Exchange Act, 2006 (Act 723). The identified MTOs are Lemfi, Wise, Transfer Go, Xoom-A Paypal Service, Sendvalu, Boss Revolution, BTC-AZA Finance, and Supersonicz. The BoG also warned the public and regulated financial institutions to avoid dealing with the illegal MTOs.
The Need for Adherence to the Foreign Exchange Act
According to the notice, the eight MTOs have violated Section 3.1 of the Foreign Exchange Act, stating that no person should engage in the business of dealing in foreign exchange without a license issued under this Act. Section 15.3 of the same law emphasizes that any movement of foreign exchange to and from Ghana should be done by persons with the requisite licenses. Additionally, the BOG reminded approved MTOs to adhere strictly to the requirements of their respective licenses.
Ghana’s Foreign Exchange Challenges
Ghana has been struggling with a shortage of foreign exchange on the official market, increasing pressure on the local currency’s exchange rate versus the U.S. dollar and fueling inflation. The country’s monetary authorities have taken measures to restrict the forex parallel market’s influence on the economy by suspending licenses of financial institutions caught breaking the law. In its latest action, the BoG fined and suspended the “forex license of Zeepay Ghana Limited from 27th November 2023 to 8th December 2023.”
Hot Take: Crackdown on Unapproved Money Transfer Organizations in Ghana
The Bank of Ghana has taken strict action against illegal money transfer organizations operating in Ghana, emphasizing the need to adhere to the Foreign Exchange Act, as the country grapples with foreign exchange challenges affecting its economy and fueling inflation. This crackdown is an effort to stem the tide of unapproved MTOs circumventing regulatory requirements and contributing to the shortage of foreign exchange in the country’s official market.
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