The Bank of Ghana (BoG) has announced the suspension of the remittance partnership of three Payment Service Providers for one month, effective September 18.
The institutions are Flutterwave, Cellulant Ghana, and Halges Financial Technologies
The central bank, in the notice, stated that the action was due to breaches of its updated guidelines for inward remittance services by Payment Service Providers.
On Halges Financial Technologies, the regulator stated that it is prohibited from engaging in any remittance activity until prior approval has been duly granted by the Bank of Ghana.
Reasons
The Central Bank, in the statement, argued that these sanctions are a result of multiple violations of the updated guidelines for Inward Remittance Services for Payment Service Providers, 2023.
The affected Payment Service Providers were found to have conducted unauthorised remittance activities on behalf of some Money Transfer Operators (MTOs), including Top Connect, Send App, Taptap Send, Remit Choice and Afriex, through their settlement bank, United Bank for Africa Ghana Limited (UBA Ghana).
“All remittance partnerships between these PSPs and MTOs are hereby suspended. Any bank or MTO seeking to engage the affected PSPs for remittance services in the future must reapply for approval after the suspension period has lapsed,” the regulator stated.
The Bank of Ghana also cautioned all market players to adhere strictly to the updated Guidelines for Inward Remittance Services by Payment Service Providers and all applicable foreign exchange market regulations.
It added that “non-compliance will attract further regulatory sanctions in accordance with the law.”
Source: Joy Business
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