BoG cautions public, financial institutions against unapproved money transfer organisations

 The Bank of Ghana (BoG) has advised the public not to deal with some Money Transfer Oragnisations (MTO) operating in the country.

According to the BoG, it had come to its attention that those MTOs were operating remittance in the forex market in the coun­try without the approval from the BoG.

A statement issued by the BoG and cop­ied to the Ghanaian Times in Accra on Friday mentioned the organisations as LEMFI, WISE, TRANSFER GO, XOOM-A PAYPAL SERVICE, SENDVALU, BOSS REVOLUTION, BTC-AZA FINANCE, and SUPERSONICZ.

It said Section 3.1 of the Foreign Ex­change Act, 2006 (Act 723) states that, “a person shall not engage in the business of dealing in foreign exchange without a licence issued under this Act”.

The BoG also said “By section 15.3 of the Foreign Exchange Act 2006 (Act 723), “each transfer of foreign exchange to or from Ghana shall be made through a person licensed to carry out the business of money transfers or any other authorised dealer.”

“The Public, Banks, Dedicated Electron­ic Money Issuers (DEMI) and Enhanced Payment Service Providers (EPSP) are by this Notice cautioned to desist from dealing with any of the institutions named above. Approved MTOs are hereby reminded to terminate their foreign exchange flows through their partner institutions only and to adhere strictly to all guidelines in respect of their operations,” the BoG, said.

It said by “This notice, all market players were reminded of the directives above and entreated to comply accordingly, adding that Non-compliance will result in severe sanc­tions including the withdrawal of the license of the institution in breach.”

In another development, the First Deputy Governor of BoG, Dr Maxwell Opoku-Af­ari, who spoke on BoG’s vision for FinTech and Inclusion at the just ended FinTech Festival held in Singapore, said the BoG had done a lot to promote the FinTech industry as part of measures to promote financial inclusion in the country.

He said the BoG in 2019 introduced the Payment Systems and Services Act that allowed BoG to license and regulate the electronic money issuers and payment ser­vice providers, indicating that the Act was transformational.

Dr Opoku-Afari said the BoG also in 2020 also set up the Fintech Innovation Office to drive the agenda for a cash-light economy and promote digitalisation in the country.

He said the BoG had also introduced a regulatory sandbox to test new ideas and innovation in the FinTech industry and also issued guidelines on remittances and crowd funding.

Commenting on the 3iAfrica Summit to be held in Ghana from 13th to 15th of May, 2024, which is expected to draw over 2,000 industry leaders from about 80 countries to ignite innovation and harness the impact of FinTechs in the digital financial economies across the continent, he said “We look forward to the 3iAfrica Summit becoming a beacon for financial technology and a turning point in Africa’s digital revolution. The conversations and collaborations that will start here are set to chart a new course for the continent’s economic landscape.”

To be held on the theme “Unleashing Africa’s FinTech and Digital Economic Potential,” the 3iAfrica Summit is a collabo­rative initiative by the Bank of Ghana, De­velopment Bank Ghana, and the Monetary Authority of Singapore (MAS) in collabora­tion with Elevandi.

It aims to be a strategic platform to show­case Africa’s digital prowess and to stimulate both local and international investments in the burgeoning FinTech sector.


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