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The Bank of Ghana (BoG) has suspended Taptap Send, a popular remittance platform, from partnering with local payment service providers and commercial banks for one month, effective November 8, 2024. This action follows Taptap Send’s operation of a cedi remittance wallet, a move that violates Ghana’s Foreign Exchange Act of 2006 and the regulatory guidelines for money transfer services.
In an official statement, the BoG cited that Taptap Send breached Section 3(1) of the Foreign Exchange Act, which prohibits any entity from engaging in foreign exchange activities without the required license. The Act’s provision, as quoted in the BoG’s release, states: “A person shall not engage in the business of dealing in foreign exchange without a license issued under this Act.”
Furthermore, Taptap Send failed to comply with the Updated Guidelines for Inward Remittance Services. The guidelines mandate that remittance providers must ensure timely crediting of settlement accounts in local currency and uphold anti-money laundering (AML) and counter-terrorism financing (CFT) standards. The BoG highlighted that “Paragraphs 7(d) and 7(e) of the Updated Guidelines for Inward Remittance Services” require settlement banks to only make payments to beneficiaries and report any suspected violations to the BoG while ensuring AML/CFT compliance for all accounts involved.
The Bank of Ghana underscored the critical role of these regulations in safeguarding the country’s financial system and warned that any future violations by Taptap Send would attract severe penalties. The Central Bank also reiterated its commitment to strict enforcement of financial regulations to uphold the stability and integrity of Ghana’s financial sector.
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