The Bank of Ghana (BoG) has cracked down on violations of its regulations in a sweeping move that affected multiple Money Transfer Operators (MTOs), Payment Service Providers (PSPs), and one bank.
The MTOs affected include Tap Tap Send, Top Connect, Remit Choice, Send App, and Afriex. The PSPs are Flutterwave Inc., Cellulant Ghana Limited, and Halges Financial Technologies Limited. The only bank affected is United Bank for Africa (UBA Ghana).
Five MTOs Suspended For One Month
In a circular published on 4th September, the Bank of Ghana announced the suspension of the licences of five Money Transfer Operators. These MTOs are Tap Tap Send, Top Connect, Remit Choice, Send App, and Afriex.
The regulator said they engaged in unauthorised remittance activities with some PSPs and their remittance bank. Consequently, they were suspended for one month.
However, they will be able to resume remittance operations when their partner PSPs or bank re-applies for the licence after the suspension expires.
BoG Breaks Flutterwave and Cellulant’s Partnership
The Bank of Ghana also broke the partnership between Flutterwave Inc. and Cellulant Ghana Limited for a violation of sections of the Updated Guidelines for Inward Remittance Services by Payment Service Providers, 2023. Meanwhile, Halges Financial Technologies Limited had their licence revoked for multiple violations of the regulator’s guidelines.
BoG accused the PSPs of conducting unauthorised remittances for the MTOs listed above.
Flutterwave and Cellulant can re-apply for licences at the end of their one month suspension. However, Halges’ ban will last for an indefinite period, pending when the regulator deems it fit to approve a new licence.
UBA Gets Punished For Foreign Exchange Rule Violation
The BoG suspended United Bank for Africa’s (UBA Ghana) Foreign Exchange Trading Licence for a violation of the foreign exchange market regulations.
According to the regulator, UBA Ghana engaged in unauthorised remittance activities with the PSPs and MTOs listed above. Therefore, the BoG suspended all remittance partnerships between UBA Ghana and any Dedicated Electronic Money Issuers (DEMI), PSPs, and MTOs.
However, UBA and its partners can re-apply at the end of the one month suspension. Additionally, all bans will become effective from 18th September.
Although these suspensions will hit customers hard, it is important that the regulators safeguard them in the long run through the enforcement of its regulations guiding remittances.
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