Unapproved FX Operations: Lemfi, Wise, and Others Under Regulatory Lens in Ghana

Lemfi, Wise, and Others Under Regulatory Lens in Ghana. Ghana’s Central Bank has prohibited eight money transfer organizations (MTOs) from providing remittance services without obtaining regulatory approval. In a notice witnessed by TechCabal, the affected companies comprise LemFi, Wise, Transfer Go, PayPal’s Xoom, SendValu, Boss Revolution, Aza Finance, and Supersonicz.
 

The Central Bank, as indicated in the notice reviewed by TechCabal, cautioned the general public, commercial banks, dedicated electronic money issuers (DEMI), and enhanced payments service providers (EPSP) against engaging with the mentioned entities.
 

According to Section 3.1 of Ghana’s Foreign Exchange Act, 2006 (Act 723), engaging in foreign exchange dealings without a license is expressly prohibited. As per Section 29.1 of the Act, operating without a license is subject to a fine "of not more than seven hundred penalty units or a term of imprisonment of not more than eighteen months or both."
 

The notice from Ghana’s Central Bank emphasized, “Approved MTOs are hereby reminded to terminate their foreign exchange flows through their partner institutions only and to adhere strictly to all guidelines in respect of their operations.”

For numerous African nations, remittances constitute a crucial source of foreign exchange. World Bank data indicates that remittance inflows to Sub-Saharan Africa grew an estimated 5.2% to $53 billion in 2022, in contrast to the 16.4% growth observed in the preceding year.

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Updated July 21st, 2024  by: Temitope Lawal