BY Nadia Ntiamoah
The Bank of Ghana has issued a public notice warning against dealing with unlicensed Money Transfer Organizations (MTOs) operating in the country’s remittance and foreign exchange market.
The 10 MTOs identified as operating without
approval are:
– *ACE MONEY TRANSFER*
– *REMIT UNION*
– *REMIT HOME*
– *ROZE REMIT*
– *MONTY GLOBAL*
– *NAIRAGRAM*
– *I-TRANSFER*
– *HURUPAY*
– *EVERSEND*
– *IZI SEND*
The Bank of Ghana’s action is grounded in the Foreign Exchange Act, 2006 (Act 723), which stipulates that any person engaging in foreign exchange business must obtain a license.
Section 3.1 of the Act clearly states that dealing in foreign exchange without a license is prohibited, while Section 15.3 emphasizes that foreign exchange transfers to or from Ghana should only be made through licensed persons or authorized dealers.
Consequences of Non-Compliance
The Bank of Ghana has cautioned the public, banks, Dedicated Electronic Money Issuers (DEMIs), and Enhanced Payment Service Providers (EPSPs) against transacting with these unlicensed MTOs.
Approved MTOs are also reminded to channel their foreign exchange flows through partner institutions only and adhere to operational guidelines. Failure to comply with these directives will attract severe sanctions, including license withdrawal.
Regulatory Oversight
This move underscores the Bank of Ghana’s commitment to maintaining the integrity of the foreign exchange market and protecting consumers.
As part of its regulatory oversight, the Bank of Ghana regularly issues notices and guidelines to ensure compliance with financial regulations.
Implications for Market Players
Market players are expected to take note of the Bank of Ghana’s directives and adjust their operations accordingly.
Compliance with these regulations is crucial to avoid sanctions and maintain the stability of the financial system.
The Bank of Ghana’s action serves as a reminder of the importance of regulatory compliance in the financial sector.
