Dr. Ernest Addison
The Bank of Ghana (BoG) has released information regarding inward remittance services by Payment Service Providers (PSP).
In a release signed by the Secretary of BoG, Sandra Thompson, PSPs were reminded that Dedicated Electronic Money Issuers (DEMI) or Enhanced Payment Service Providers (EPSP) should have designated accounts for remittance settlement domiciled with universal bank(s) only.
It specified that the accounts should be either a Remittance Inflow Settlement Account (RISA) or a Local Settlement Account (LSA) and should be operationally distinct from all other accounts held by the DEMI or EPSP.
The statement added that all disbursements should be made from a LSA, which should be funded from RISA, except where the DEMI or EPSP has entered into a funding arrangement with the settlement bank for the purpose of disbursement to beneficiaries.
“The repayment of the facility shall be from the Local Settlement Account upon liquidating funds from the Remittance Inflow Settlement Account,” it explained.
It elaborated that the settlement bank shall use the average interbank exchange rate published by the Ghana Association of Banks on the day of a transfer being received, or as prescribed by BoG, for the conversion of settlement funds into local currency.
Further, Forex Brokers were reminded to not deal directly with a corporate entity, and should not also buy or sell foreign exchange for their own account nor hold, borrow or lend foreign exchange to an authorized market participant.
“For the avoidance of doubt, Forex Brokers are not authorised to terminate foreign inflows on behalf of Remittance Companies, Fintechs and Aggregators,” it stated.
“Termination of these flows can only be effected through their partner banks or Fintechs. Non-compliance will result in severe sanctions including the withdrawal of the licence of the institution in breach,” it added.
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