Ghana’s Central Bank has taken action against eight money transfer organizations (MTOs), including LemFi, Wise, Transfer Go, PayPal’s Xoom, SendValu, Boss Revolution, Aza Finance, and Supersonicz. The regulatory move prohibits these companies from providing remittance services without obtaining the required regulatory approval.
The notice specifically warns the public, commercial banks, dedicated electronic money issuers (DEMI), and enhanced payments service providers (EPSP) against engaging with the listed MTOs. The action aligns with Section 3.1 of Ghana’s Foreign Exchange Act, 2006 (Act 723), which explicitly forbids foreign exchange dealings without a license.
According to Sections 29.1 of the Act, operating without a license carries penalties, including a fine “of not more than seven hundred penalty units or a term of imprisonment of not more than eighteen months or both.”
The Central Bank’s notice emphasizes that approved MTOs must conduct their foreign exchange flows exclusively through their partner institutions and adhere rigorously to all operational guidelines.
Remittances play a crucial role as a source of foreign exchange for many African countries. World Bank data reveals that remittance inflows to Sub-Saharan Africa witnessed an estimated 5.2% growth to $53 billion in 2022, compared to the 16.4% surge in the previous year.