In response to recent media reports alleging that $8 billion has been withheld by newly licensed Money Transfer Operators (MTOs) and 11 Fintech companies in the last two years, the Bank of Ghana (BoG) has vehemently denied these claims.
The central bank refuted the reports, stating that the allegations are baseless and inaccurate.
According to the media reports, an estimated $12 billion in remittances to Ghana reportedly went untracked and unaccounted for between 2018 and 2022, with both the Bank of Ghana and the Auditor General failing to monitor these transactions effectively.
The Central Bank indicated that Ghana has seen a consistent increase in remittance inflows year-on-year, as confirmed by data from both the Bank of Ghana and the World Bank.
“The Bank of Ghana does not license MTOs since such companies are based abroad. The Bank, however, conducts due diligence on MTOs who partner local banks and/or FinTechs to deliver remittances into Ghana as part of the authorisation process.
“Furthermore, all remittance inflows are credited to the nostro account of partner banks of Payment Service Providers (PSPs), as such, no PSP holds any forex inflows from inward remittances. The partner bank credits the local cedi accounts of PSPs for onward transfer to beneficiaries.”
“Based on the above, the assertion that the country has lost US$8 Billion in the last two years (i.e, US$ 5 Billion in 2022 and US$3 Billion in 2023) based on FinTechs and MTOs withholding same at the expense of the country’s foreign currency reserves is misleading and not grounded on facts.
Additionally, the central bank refuted claims that Ghana operates two foreign exchange systems.
“Ghana does not operate two foreign exchange systems. Both banks and FinTechs who engage in inward remittance services do regularly submit prudential returns to the Bank of Ghana as part of their regulatory obligations.
“Banks and FinTechs have the responsibility of complying with the Foreign Exchange Act, 2006 (Act 723) and other legal and regulatory requirements.”
The Bank of Ghana has assured the public that it takes its regulatory and oversight responsibilities seriously, emphasizing its commitment to ensuring transparency and accountability in the financial sector.
BoG officials have urged the public not to panic or spread false information, asserting that measures are in place to address any potential discrepancies in remittance transactions.
By Vincent Kubi