The Bank of Ghana (BoG) has again cautioned that it will terminate the remittance licenses of any financial institution that breaks the Foreign Exchange Act.
The central bank in a statement issued on July 29, 2025 revealed that it is aware that some financial institutions are still violating the act.
“It has come to the attention of the Bank of Ghana that some Banks, Dedicated Electronic Money Issuers (DEMIs), Enhanced Payment Service Providers (EPSPs) and Money Transfer Operators (MTOs) continue to violate the Foreign Exchange Act, 2006 and the Updated Guidelines for Inward Remittance Services by Payment Service Providers despite several cautions and reminders”, the statement said.
According to the Bank of Ghana, the violations include, termination of inward remittances using unapproved channels, engagement in Foreign Exchange Swaps in the context of Inward Remittance Business, termination of remittances on behalf of institutions without prior approval from the Bank of Ghana; and applications of unprescribed Forex Exchange rates.
Reiterating the guidelines, the Bank of Ghana cautioned all financial institutions to strictly adhere to the funding of the Local Settlement Account. This, it emphasized must be strictly done in accordance with section 7.1 (c) of the Updated Guidelines for Inward Remittance Services by Payment Service Providers.
It added that financial institutions must ensure that all disbursements be done from the Local Settlement Account as stated in section 7.2 (a) of the Updated Guidelines for Inward Remittance Services by Payment Service Providers.
“Dedicated Electronic Money Issuers and Enhanced Payment Service Providers should ensure that pre-funding arrangement with the Settlement Bank shall be done in accordance with section 7.2 (b) of the Updated Guidelines for Inward Remittance Services by Payment Service Providers”, the statement said.
It explained that In light of the above, and in line with the Bank of Ghana’s regulatory responsibility to ensure transparency, accountability, and integrity in the foreign exchange and remittance ecosystem, all Banks, DEMIs and EPSPs have been directed to submit weekly reports per MTO, detailing daily individual inward remittance transactions log, along with the corresponding daily sum of foreign exchange credited into respective Nostro accounts.
“Failure to submit accurate and timely reports constitutes a regulatory breach under Section 42 of the Payment Systems and Services Act (Act 987) and Section 93(3) (d) of Act 930 and will attract the appropriate administrative sanctions”.
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