BoG Halts Dealings With 10 Unlicensed Money Transfer Organizations

Ghana's central bank has issued a stern directive ordering all regulated financial institutions to cease transactions with ten money transfer organizations (MTOs) that it says are operating in the country's remittance and foreign exchange market without approval. The move signals a broader effort to tighten oversight of a sector vital to the nation's economy.

In a notice dated June 27, the Bank of Ghana (BoG) identified the following entities as unauthorized: ACE Money Transfer, Remit Union, Remit Home, Roze Remit, Monty Global, Nairagram, I-Transfer, Hurupay, Eversend, and IZI Send.

The central bank has instructed all banks, Dedicated Electronic Money Issuers (DEMIs), and Enhanced Payment Service Providers (EPSPs) in Ghana to immediately sever any operational links with the listed MTOs. This effectively bars the named firms from channeling remittances through official financial networks within the country.

The Bank of Ghana's action is rooted in the country's Foreign Exchange Act, 2006 (Act 723). The regulator cited Section 3.1 of the act, which explicitly requires any entity engaging in the business of foreign exchange to obtain a license. Furthermore, the BoG referenced Section 15.3, which mandates that all international money transfers must be conducted through licensed financial entities.

"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 these institutions," the central bank's statement declared.

The BoG also issued a reminder to its approved MTOs to "terminate their foreign exchange flows through their partner institutions only and to adhere strictly to all the guidelines in respect of their operations."

Remittances are a cornerstone of Ghana's economy, representing a significant source of foreign currency inflows and financial support for many households. World Bank data indicates that Ghana received an estimated $4.6 billion in remittances in 2023, making it one of the largest recipients in Sub-Saharan Africa. These funds are crucial for covering essential expenses such as education, healthcare, and daily living costs, thereby playing a vital role in poverty reduction and overall economic stability.

The central bank's crackdown aims to safeguard the integrity of this critical financial channel. Operations outside the licensed framework pose several risks, including the potential for money laundering, terrorism financing, and fraud. Unregulated platforms may lack the robust security and consumer protection measures that are mandatory for licensed operators, leaving users vulnerable to financial losses and data breaches.

The Bank of Ghana has warned that it will impose "severe sanctions" for non-compliance with its directive. These penalties could include the withdrawal of operating licenses for any regulated financial institution found to be collaborating with the unapproved MTOs.

As of the time of this report, none of the ten listed money transfer organizations had issued a public statement in response to the Bank of Ghana's notice.

The central bank advises the public to verify the licensing status of any financial service provider before conducting transactions, directing them to engage only with institutions that are explicitly authorized to operate in the remittance and foreign exchange market. A list of approved financial institutions is available on the Bank of Ghana's official website.