The Bank of Ghana (BoG) has directed banks, Dedicated Electronic Money Issuers (DEMIs), and Enhanced Payment Service Providers (EPSPs) to strictly comply with regulatory guidelines governing inward remittances or face sanctions.The directive required those institutions to submit weekly reports on each Money Transfer Operator (MTO), detailing daily individual inward remittance transaction logs and the corresponding daily sums of foreign exchange credited into their respective Nostro accounts.In a statement issued in Accra yesterday and signed by the Secretary of the Bank, Ms Sandra Thompson, the BoG noted with concern that despite repeated warnings and reminders, some banks, DEMIs, EPSPs, and MTOs continue to flout provisions of the Foreign Exchange Act, 2006 (Act 723) and the Updated Guidelines for Inward Remittance Services by Payment Service Providers.The BoG described those actions as serious regulatory breaches that compromised the integrity of the country's foreign exchange and remittance ecosystem.According to the BoG, it was part of its regulatory mandate to ensure transparency, accountability, and sound governance within the financial system.It, therefore, warned that failure to submit accurate and timely reports constituted a breach of 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 would attract the appropriate administrative sanctions.Among the violations identified were the termination of inward remittances using unapproved channels, engaging in foreign exchange swaps within the context of inward remittance operations, and terminating remittance transactions on behalf of institutions without prior approval from the Bank of Ghana.In addition, it said the application of unauthorised foreign exchange rates had also been flagged as a breach of the approved guidelines.The BoG warned that it would not hesitate to impose sanctions on any institution found to be in violation of the regulations.It also said the Central Bank would terminate the remittance partnerships of all MTOs whose operations are not in full compliance with the guidelines.In line with this, the BoG directed that the funding of Local Settlement Accounts by DEMIs and EPSPs must be done strictly in accordance with Section 7.1(c) of the Updated Guidelines for Inward Remittance Services.It also emphasised that all disbursements must be made from the Local Settlement Account as required under Section 7.2(a)."Additionally, DEMIs and EPSPs must ensure that pre-funding arrangements with their respective Settlement Banks are conducted in accordance with Section 7.2(b) of the same guidelines," the statement said.The BoG reaffirmed its commitment to cleaning up the remittance landscape and strengthening oversight over foreign exchange inflows.It said this move was aimed at ensuring that all remittance transactions were conducted through approved channels in a transparent and traceable manner, in line with the broader objective of safeguarding the stability of the cedi and the financial system. BY TIMES REPORTER
Food prices decline Submit weekly reports or face sanctions …BoG directs DEMIs, EPSPs - Ghanaian Times
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20 hours ago
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Ghanaian Times