Ghana’s Central Financial institution has barred eight cash switch organisations (MTOs) from providing remittance providers with out regulatory approval. Based on a discover seen by TechCabal, these firms embrace LemFi, Clever, Switch Go, PayPal’s Xoom, SendValu, Boss Revolution, Aza Finance, and Supersonicz.
Based on the discover seen by TechCabal, the Central Financial institution warned the general public, industrial banks, devoted digital cash issuers (DEMI), and enhanced funds service suppliers (EPSP) about coping with the listed firms.
Part 3.1 of Ghana’s Foreign Exchange Act, 2006 (Act 723) prohibits dealing in international change with out a licence. Based on Part 29.1 of the Act, working with out a licence attracts a high quality “of no more than seven hundred penalty items or a time period of imprisonment of no more than eighteen months or each.”
“Accredited MTOs are hereby reminded to terminate their international change flows by means of their accomplice establishments solely and to stick strictly to all pointers in respect of their operations,” the discover from Ghana’s Central Financial institution learn.
For a lot of African nations, remittances are an essential supply of international change. According to World Bank data, remittance inflows to Sub-Saharan Africa, grew an estimated 5.2% to $53 billion in 2022, in contrast with 16.4% within the earlier yr.