Bank of Ghana Cracks Down on Forex Violations: Banks and MTOs Face Licence Revocation Over Non-Compliance

The Bank of Ghana (BoG) has issued a stern warning to financial institutions, threatening to revoke the licenses of those violating the Foreign Exchange Act and remittance guidelines. In a statement released on July 29, 2025, the Central Bank expressed concern over continued infractions, despite multiple regulatory reminders and warnings. The BoG emphasized its determination to enforce compliance across all segments of the financial sector.

Institutions cited include commercial banks, Dedicated Electronic Money Issuers (DEMIs), Enhanced Payment Service Providers (EPSPs), and Money Transfer Operators (MTOs). These entities have reportedly engaged in persistent violations such as using unauthorized channels for remittances, conducting foreign exchange swaps without approval, and applying unofficial exchange rates in settlements.

BoG stated that these infractions undermine the stability of the foreign exchange system and warned of severe consequences. These include cutting off partnerships with non-compliant MTOs and, in extreme cases, revoking remittance licenses. The Bank stressed that it would not hesitate to impose sanctions on any institution found guilty of non-compliance.

To reinforce its position, the BoG reiterated the need for strict adherence to specific provisions in the Updated Guidelines for Inward Remittance Services. These include the proper funding and use of Local Settlement Accounts and ensuring pre-funding arrangements are aligned with regulatory standards. All disbursements must also originate from these accounts.

Furthermore, the BoG has mandated all regulated financial institutions to submit detailed weekly reports on inward remittance transactions. This measure aims to enhance monitoring and transparency while ensuring that all activities related to foreign exchange and remittances remain within the legal framework. The Bank urged all players in the sector to comply promptly to avoid sanctions.

Source: Citi newsroom