BoG warns financial institutions: FX violations will lead to license termination

The Bank of Ghana (BoG) has issued a fresh warning to financial institutions, stating that it will revoke the remittance licenses of any entity found breaching the Foreign Exchange Act or the updated remittance guidelines.

In a statement released on July 29, 2025, the central bank said it had observed continued non-compliance by some banks, Dedicated Electronic Money Issuers (DEMIs), Enhanced Payment Service Providers (EPSPs), and Money Transfer Operators (MTOs)—despite several prior warnings.

Key infractions highlighted by the BoG include:

Terminating inward remittances through unapproved channels

Conducting unauthorized foreign exchange swaps in remittance transactions

Processing remittances on behalf of institutions without BoG approval

Applying foreign exchange rates not prescribed by regulatory guidelines

The BoG reiterated that all disbursements must be made strictly from Local Settlement Accounts as outlined in Sections 7.1(c) and 7.2(a) of the updated guidelines. It also reminded DEMIs and EPSPs that pre-funding arrangements with settlement banks must comply with Section 7.2(b).

In a bid to enforce transparency and oversight, the BoG now requires all licensed institutions to submit weekly reports per MTO, which must include:

A daily log of individual inward remittance transactions

The corresponding daily total foreign exchange inflows credited to respective Nostro accounts

The central bank emphasized that failure to submit timely and accurate reports will be considered a breach under Section 42 of the Payment Systems and Services Act (Act 987) and Section 93(3)(d) of the Banks and Specialised Deposit-Taking Institutions Act (Act 930) and will attract appropriate administrative sanctions.