BoG Raises Red Flag Over Unauthorized Remittance Firms

The Bank of Ghana (BoG) has issued a strong caution to the public, banks, Dedicated Electronic Money Issuers (DEMIs), and Enhanced Payment Service Providers (EPSPs) regarding the operations of ten Money Transfer Organisations (MTOs) that are illegally transacting in the country’s remittance and foreign exchange market.

In a public notice dated June 27, the central bank revealed that these entities are conducting business without regulatory approval, posing risks to consumers and the stability of the financial system.

The firms identified by the BoG include ACE Money Transfer, Remit Union, Remit Home, Roze Remit, Monty Global, Nairagram, I-Transfer, Hurupay, Eversend, and IZI Send. The regulator has directed all financial service providers and the general public to immediately refrain from engaging in any transactions with these organisations.

Legal Framework

In detailing the basis for the caution, the BoG cited specific provisions under the Foreign Exchange Act, 2006 (Act 723). Section 3.1 of the Act clearly prohibits any person or institution from engaging in foreign exchange business without the requisite licence issued by the central bank. This law is designed to protect the integrity of the financial sector, ensure the safety of cross-border transactions, and guard against illicit financial flows.

The BoG further referenced Section 15.3 of the Act, which mandates that all foreign exchange transfers into or out of Ghana must be routed through licensed money transfer businesses or authorised dealers approved by the central bank. This ensures that funds flowing across borders are subject to scrutiny and that proper records are maintained for regulatory and security purposes.

According to the Bank, the flagged entities have been operating in violation of these provisions, undermining the framework that governs Ghana’s financial markets. The regulator’s statement underscored that allowing unlicensed operators to conduct remittance activities increases the risks of fraud, money laundering, and loss of consumer funds.

The BoG’s directive is explicit: all banks, DEMIs, EPSPs, and other financial service providers must immediately cease any business relationships or transactions with the named MTOs.

Any institution found to be continuing such dealings will face severe regulatory consequences. Among the potential sanctions is the withdrawal of operating licences, which would effectively bar institutions from participating in Ghana’s financial sector.

The Bank’s notice serves as a reminder to consumers and businesses alike to exercise caution when choosing remittance services. While digital payments and cross-border transfers have become more accessible, the BoG has consistently stressed that only regulated entities should be trusted with handling funds.

This development also reinforces the importance of due diligence by financial institutions in onboarding and maintaining relationships with third-party service providers. As the financial sector evolves and more fintechs emerge, regulators globally have tightened scrutiny to protect consumers and safeguard the financial system from abuse.

Commitment

The BoG reiterated its commitment to maintaining the integrity and stability of the financial system. By acting decisively to name and shame unlicensed operators, the central bank aims to deter illegal practices and promote compliance among all market participants.

The Bank’s move is also intended to remind the public of the importance of verifying the authorisation status of any company offering remittance and forex services.

In its concluding remarks, the BoG warned that it would not hesitate to impose sanctions on any institution or individual that defies its directive. The central bank emphasised that adherence to regulatory guidelines is not optional but an obligation that ensures trust and confidence in Ghana’s financial ecosystem.

Consumers who are uncertain about the status of a money transfer provider are encouraged to consult the list of approved MTOs published periodically by the Bank of Ghana or to contact the Bank directly for verification. This vigilance will help prevent potential losses and contribute to a secure financial environment.