Sandra Thompson
The Bank of Ghana (BoG) has cautioned banks, electronic money issuers, Enhanced Payment Service Providers, (EPSPs), among others over the non-compliance with remittance and the violation of the foreign Exchange Act.
A statement issued and signed by the Secretary to the Bank of Ghana (BoG), Sandra Thompson, said some banks, electronic money issuers enhanced payment service providers and money transfer operators (MTOs) continue to violate the foreign Exchange Act 2006 despite several cautions and reminders.
The violations include 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 BoG and applications of prescribed forex exchange rates.
It stated that the Central Bank will sanction any institution caught violating the Act and terminate the remittances partnership of all MTOs whose operation are not in compliance with the approved guidelines.
“The funding of the Local Settlement Account should be strictly done in Accordance with section 7.1 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 arrangement 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,” it noted.
The Bank of Ghana further directed all banks DEMIs and EPSPs to submit weekly reports per MTO, detailing daily individual, inward remittance transactions log, along with the corresponding daily sum of foreign exchange credited into respective Nostro accounts.
It, however, noted that failure by the banks to submit accurate and timely report will attract administrative sanctions.
“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 added.
By Florence Asamoah Adom