BoG refutes allegations of $8bn remittance losses due to operations by FinTechs and MTOs
The Central Bank says it has taken notice of erroneous comments and discussions in the media regarding the role of FinTechs and Money Transfer Operators (MTOs) with regard to inward remittance services in Ghana where some $8bn have been lost.
According to media reports, the decline in Ghana’s inward remittances has been validated by the Bank of Ghana that the newly licensed MTOs and 11 Fintech Companies have withheld approximately GH¢18 billion (US$ 3 billion) in 2022 and GH¢57 billion (US$ 5 billion) in 2023 at the expense of the country’s foreign currency reserves.
Further asserting that the country has lost approximately US$ 8 billion in the past two years, which could have been used to shore up the persistent depreciation of the local currency against the major trading currencies.
But in a statement issued by the BoG on Tuesday, June 25, 2024, the Central Bank described as misleading media reports that the country has lost some $8bn over the last two years as a result of FinTechs and Money Transfer Operators withholding the said amount.
“The assertion that the country has lost US$8 Billion in the last two years ( US$ 5 Billion in 2022 and US$3 Billion in 2023) based on FinTechs and MTOs withholding same at the expense of the country’s foreign currency reserves is misleading and not grounded on facts,” it said.
Explaining the role of MTOs and FinTechs in inward remittance services in Ghana, the BoG noted that it does not license MTOs since such companies are based abroad, adding that the Bank, however, conducts due diligence on MTOs who partner local banks and/or FinTechs to deliver remittances into Ghana as part of the authorisation process.
“Furthermore, all remittance inflows are credited to the nostro account of partner banks of Payment Service Providers (PSPs), as such, no PSP holds any forex inflows from inward remittances. The partner bank credits the local cedi accounts of PSPs for onward transfer to beneficiaries,” it added.
