Bank Of Ghana Warns Banks, Public Against 10 Unlicensed Forex Money Transfer Platforms

• The Bank of Ghana has cautioned stakeholders against dealing with 10 blacklisted money transfer organisations
• The caution was directed at banks, Dedicated Electronic Money Issuers and Enhanced Payment Service Providers
• The central bank warned in a statement that flouting its directives will result in severe punishments

The Bank of Ghana has cautioned stakeholders against dealing with 10 money transfer organisations operating in the remittance and foreign exchange market without regulatory approval.

The central bank warned that non-compliance with the directive will result in severe sanctions, including the withdrawal of the license to institutions in breach.

The message was directed at the public, banks, Dedicated Electronic Money Issuers (DEMIs) and Enhanced Payment Service Providers (EPSPs).

In a statement, it listed the blacklisted organisations as ace Money Transfer, Remit Union, Remit Home, Roze Remit, Monty Global, Nairagram, I-Transfer, Hurupay, Eversend and Izi Send.

“By this notice, all market players are reminded of the above directives and entreated to comply accordingly.”

“Approved money transfer organisations are reminded to terminate their foreign exchange flows through their partner institutions only and to adhere strictly to all the guidelines in respect of their operations”.

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.

Section 15.3 of the Foreign Exchange Act states that 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.”

Previous Bank of Ghana sanctions

In 2023, the Bank of Ghana released a list of eight Money Transfer Organisations (MTOs) Ghanaians should avoid.

In a statement, the central bank said these platforms operating within the remittance and Ghana forex market were not approved.

The organisations listed were LEMFI, WISE, TRANSFER GO, XOOM-A PAYPAL SERVICE, SENDWALU, BOSS REVOLUTION, BTC-AZA FINANCE, and SUPERSONIC.

It also warned banks against dealing with any of the blacklisted institutions.

At a point, the Bank of Ghana, Fidelity Bank and First National Bank Ghana were sanctioned for breaching rules on interbank forex trading rules.

Their forex trading licences were revoked, and they would not be permitted to do any forex transactions for 30 days.

Ghana named amongst countries on 'dirty-money' blacklist

YEN.com.gh reported that in the past, the European Union (EU) blacklisted Ghana over the country’s weak money laundering and terrorism financing rules.

The EU believes the West African country poses a threat due to its lax control over terrorism financing and money laundering.

Other blacklisted countries include Saudi Arabia, Panama and Nigeria, as well as 19 other jurisdictions.

Source: YEN.com.gh