Ghana’s central bank has terminated the operations of eight money transfer organisations ( MTOs) on the grounds that they are offering remittance services without regulatory approval. 

According to a notice seen by Peoples Gazette, the companies include LemFi, Wise, Transfer Go, PayPal’s Xoom, SendValu, Boss Revolution, Aza Finance, and Supersonicz.

The apex bank, in the notice, warned the public, commercial banks, dedicated electronic money issuers (DEMI), and enhanced payments service providers (EPSP) about dealing with the listed companies. 

The notice from Ghana’s Central Bank referenced section 3.1 of the Foreign Exchange Act, 2006 (Act 723), which prohibits dealing in foreign exchange without a licence. 

Section 15.3 of the Foreign Exchange Act further reads that each foreign exchange transfer to or from Ghana shall be made through a person licensed to carry out the business of money transfers or any other authorised dealer. 

“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,” the notice from Ghana’s central bank read. 

Remittances are an important source of foreign exchange for many African countries. According to World Bank data, remittance inflow to Sub-Saharan Africa grew by an estimated 5.2 per cent to $53 billion in 2022.