- BoG’s New Enforcement Push Targets FX and Remittance Misconduct
The Bank of Ghana (BoG) is ratcheting up its policing of the foreign exchange (FX) and remittance market, unveiling a tougher enforcement regime that promises to fundamentally change the way banks and payment service providers handle cross-border flows. The measures, announced to the CEOs of Banks after the Monetary Policy Committee’s August meeting, are framed as a bid to close compliance loopholes, bolster currency stability, and protect one of the country’s most resilient sources of forex, which is the inward remittances.
At the heart of the reforms is a zero-tolerance policy on three fronts: the unapproved termination of remittance arrangements, foreign exchange swaps within remittance operations, and the application of “unprescribed” FX rates outside the central bank’s published reference bands.
“We will no longer allow hidden practices in the remittance and FX space that distort market signals, erode trust, and undermine the cedi,” Governor Dr Johnson P. Asiama told bank executives. “The stability we have fought to restore will not be sacrificed on the altar of non-compliance.”
Banks and remittance partners will now be required to submit weekly inward remittance reports, detailing both transaction-level data and foreign exchange credits to their Nostro accounts. The format and frequency are designed to give the central bank near-real-time oversight of remittance flows, an area that, until now, has suffered from reporting lags and inconsistent data quality.
“This is not a suggestion — it is a directive,” Asiama emphasised. “We expect accurate, timely, and complete reporting. The era of blind spots in remittance flows is over.”
The new rules carry real teeth. Non-compliance will attract sanctions under the Payment Systems and Services Act, 2019 (Act 987) and the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930), including fines, substantial fines, temporary suspension of operating licences, and, in extreme cases, public naming to deter systemic breaches.
The Governor argued that transparency in remittance operations is not simply a regulatory goal but a national economic imperative. “Remittances are a lifeline for the Ghanaian economy. Every cedi of that inflow must be traceable, compliant, and free from manipulation,” he said.
For compliance teams, the implication is clear: remittance oversight is now a board-level responsibility. Banks will need to strengthen reporting systems, automate FX rate compliance, and monitor partners closely.
“If you play in the FX and remittance space, you must play by the rules, or you will not play at all,” Asiama warned.
The policy shift comes against a backdrop of heightened sensitivity over the cedi’s performance and the role of forex liquidity in supporting Ghana’s post-IMF-programme recovery. While remittances have been a steady inflow, often cushioning external shocks, irregularities in how they are priced, settled, and reported have raised red flags at the BoG.
Regulators believe that improper terminations of correspondent arrangements can disrupt inflows overnight, while hidden FX swaps within remittance operations may mask real liquidity positions. Similarly, unapproved rates can lead to “two-tier” pricing that fuels speculation and undermines the official interbank market.
For banks and remittance operators, the message is unequivocal: compliance is no longer a back-office function but a board-level accountability. Institutions will need to invest in stronger reporting infrastructure, automate compliance checks on FX rate applications, and build auditable trails for all remittance-related flows. Many may also have to recalibrate their relationships with international money transfer operators to ensure that contractual terms align with the BoG’s prescriptions.
The upside, according to the central bank, is a more transparent and predictable forex market, one in which remittance inflows are fully captured, leakages are minimised, and the currency benefits from improved market confidence. However, industry insiders warn that smaller banks and fintech-led operators will face a heavier compliance burden, which could potentially accelerate sector consolidation.
Investor Bulletin – Market Conduct & FX Compliance
BoG clamps down on remittance and FX market breaches with a new enforcement regime under the Foreign Exchange Act and Inward Remittance Guidelines.
Weekly transaction and Nostro credit reporting now mandatory; violations risk fines, licence suspension, and public naming under Acts 987 & 930.
Zero tolerance for unapproved remittance terminations, FX swaps in remittance operations, and unprescribed FX rates.
Aim: boost forex market transparency, protect cedi stability, and safeguard remittance flows.
