BoG Warns of License Revocations Over Inward Remittance Violations
The Bank of Ghana (BoG) has reiterated its warning to financial institutions over breaches of the Foreign Exchange Act, 2006 (Act 723), stating that persistent offenders risk having their remittance licenses revoked.
In a statement issued on July 29, 2025, the Central Bank said it has observed continued violations of the Act and its Updated Guidelines for Inward Remittance Services by Payment Service Providers, despite several prior cautions.
“It has come to the attention of the Bank of Ghana that some Banks, Dedicated Electronic Money Issuers (DEMIs), Enhanced Payment Service Providers (EPSPs), and Money Transfer Operators (MTOs) continue to violate the Foreign Exchange Act, 2006 and the Updated Guidelines for Inward Remittance Services by Payment Service Providers,” the BoG said.
The infractions cited include the termination of inward remittances through unapproved channels, engagement in foreign exchange swaps in the context of remittance business, unauthorized termination of remittances on behalf of institutions, and the application of unapproved foreign exchange rates.
The BoG emphasized that financial institutions must strictly comply with the provisions of the Guidelines, especially with regard to the funding and operation of the Local Settlement Account.
“Financial institutions must fund the Local Settlement Account strictly in accordance with section 7.1(c) of the Guidelines, and all disbursements must be done from this account as specified in section 7.2(a),” the statement noted.
It further directed DEMIs and EPSPs to ensure that all pre-funding arrangements with their settlement banks conform to section 7.2(b) of the Guidelines.
To strengthen regulatory oversight, the central bank has also mandated that all Banks, DEMIs, and EPSPs submit weekly reports per MTO, detailing daily individual inward remittance transactions and the corresponding foreign exchange sums credited into their Nostro accounts.
The BoG warned that failure to provide accurate and timely reports will be considered a regulatory breach under Section 42 of the Payment Systems and Services Act, 2019 (Act 987) and Section 93(3)(d) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930), and will attract appropriate administrative sanctions.
The move forms part of broader efforts by the BoG to ensure transparency, accountability, and integrity in Ghana’s foreign exchange and remittance ecosystem.
