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FX violations: BoG orders weekly remittance disclosures from financial institutions

 


The Bank of Ghana (BoG) has directed all banks, Dedicated Electronic Money Issuers (DEMIs) and Enhanced Payment Service Providers (EPSPs) to submit detailed weekly reports on inward remittance transactions to curb foreign exchange violations.

It is therefore now mandatory for financial institutions to provide daily logs of individual remittance transactions for each Money Transfer Operator (MTO), alongside the total daily foreign exchange credited into their respective Nostro accounts.

This is to enhance transparency, accountability, and regulatory oversight within the foreign exchange and remittance ecosystem.

The BoG said the move is in line with its responsibility to safeguard the integrity and stability in the country’s  FX market and to ensure compliance with the Updated Guidelines for Inward Remittance Services.

Institutions that fail to submit accurate and timely reports risk regulatory sanctions.

The Central Bank reiterates that it will not hesitate to revoke remittance licenses or terminate partnerships with non-compliant institutions as it intensifies enforcement efforts.

Note that failure to submit accurate and timely reports constitutes a regulatory breach under Section 42 of the Payment Systems and Services Act (Act 987) and Section 93(3) (d) of Act 930 and will attract the appropriate administrative sanctions”, the BoG said in a statement July 29, 2025.

The directive follows continuous breaches of FX rules by certain banks and remittance partners, including the use of unapproved channels, unauthorised forex swaps and the application of unofficial exchange rates.

The Bank will sanction any violating institution and terminate the remittance partnerships of all MTOs whose operations are not in compliance with the approved guidelines”, it further cautioned.

The regulator is asking financial institutions to strictly adhere to the following guidelines:

i. The funding of the Local Settlement Account should be strictly done in accordance with section 7.1 (c) of the Updated Guidelines for Inward Remittance Services by Payment Service Providers.

ii. Ensure that all disbursements shall be from the Local Settlement Account as stated in section 7.2 (a) of the Updated Guidelines for Inward Remittance Services by Payment Service Providers.

iii. DEMIs/EPSPs should ensure that pre-funding arrangement with the Settlement Bank shall be done in accordance with section 7.2 (b) of the Updated Guidelines for Inward Remittance Services by Payment Service Providers.

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