BoG Warns Financial Institutions and MTOs Violating Guidelines for Inward Remittance Services
The Bank of Ghana has observed a sharp rise in the violation of the Foreign Exchange Act, 2006 and the Updated Guidelines for Inward Remittance Services by Banks, Dedicated Electronic Money Issuers (DEMIs), Enhanced Payment Service Providers (EPSPs) and Money Transfer Operators (MTOs).
They have been warned against the continuous termination of inward remittances using unapproved channels; Engagement in Foreign Exchange Swaps in the context of Inward Remittance Business; Termination of remittances on behalf of institutions without prior approval from the Bank of Ghana; and Applications of unprescribed Forex Exchange rates.
In a statement, the central bank warned that it would sanction any violating institution and terminate the remittance partnerships of all MTOs whose operations are not in compliance with the approved guidelines.
It further charged them to submit weekly reports per MTO, detailing a daily individual inward remittance transactions log, along with the corresponding daily sum of foreign exchange credited into respective Nostro accounts.
“Note that failure to submit accurate and timely reports constitutes a regulatory breach under Section 42 of the Payment Systems and Services Act (Act 987) and Section 93(3) (d) of Act 930 and will attract the appropriate administrative sanctions.”
It has since directed them to adhere to:
-The funding of the Local Settlement Account should be strictly done in accordance with section 7.1 (c) of the –Updated Guidelines for Inward Remittance Services by Payment Service Providers.
-Ensure that all disbursements shall be from the Local Settlement Account as stated in section 7.2 (a) of the —-Updated Guidelines for Inward Remittance Services by Payment Service Providers; and
-DEMIs/EPSPs should ensure that pre-funding arrangements with the Settlement Bank shall be done in accordance with section 7.2 (b) of the Updated Guidelines for Inward Remittance Services by Payment Service Providers.
Source: https://opemsuo.com/author/hajara-fuseini/
