Non-compliance of guidelines for inward remittances will attract severe sanctions – BoG to DEMI, EPSPs

The Bank of Ghana has reminded players of Enhanced Payment Service Providers (EPSP) and Dedicated Electronic Money Issuer (DEMI) services to comply with the set-out guidelines for inward remittances issued by the Central Bank.

A notice issued by the BoG and sighted by GhanaWeb Business urged DEMI and ESSPs to have designated accounts for remittance settlement domiciled with only universal banks.

It further noted that all disbursements must be made from the Local Settlement Account.

“The Local Settlement Account shall only be funded from the Remittance Inflow account except where the DEMI or EPSP has entered into a funding arrangement with the settlement bank for the purpose of disbursement to beneficiaries,” the notice explained.

"The repayment of the facility shall be from the Local Settlement Account upon liquidating funds from the Remittance Inflow Settlement Account,” the BoG added.

The Central Bank further urged DEMI and ESSPs to use the average interbank exchange rate published by the Ghana Association of Banks on the day the transfer is received or the rate prescribed by Bank of Ghana, for the conversion of settlement funds into local currency.

The financial sector regulator however reminded Forex Brokers of their obligation per the post authorization conditions.

“An FX broker shall not deal directly with a corporate entity, it shall not also buy or sell foreign exchange for its own account nor hold, borrow or lend foreign exchange to an authorized market participant,” it stated.

It continued, “Forex Brokers are not authorised to terminate foreign inflows on behalf of Remittance Companies, Fintechs and Aggregators. Termination of these flows can only be effected through their partner banks or Fintechs.”

The BoG emphasized that non-compliance of these guidelines will result in severe sanctions including the withdrawal of the licence of the institution found in breach.

MA/NOQ