BoG warns against unfair practices in inward remittance services, issues new guidelines
By DL News
Published
Updated
2 min read
According to the Central Bank, actions such as the payment of rebates, commissions, or preferential arrangements that distort competition will attract decisive regulatory sanctions under the relevant laws.
The Bank of Ghana (BoG) has issued a stern warning to all entities involved in inward remittance services, cautioning against unfair market practices and anti-competitive behaviour.
According to the Central Bank, actions such as the payment of rebates, commissions, or preferential arrangements that distort competition will attract decisive regulatory sanctions under the relevant laws.
Updated Guidelines for Remittance Services
The directive was contained in BoG’s updated Guidelines for Inward Remittance Services by Payment Service Providers, which set out clear standards for the industry.
The objectives of the new framework are to:
Provide a regulatory guide for Dedicated Electronic Money Issuers (DEMIs) and Enhanced Payment Service Providers (EPSPs) partnering with Money Transfer Operators (MTOs).
Establish minimum standards and requirements for the delivery of inward remittance services.
The guidelines apply to all inward remittances delivered through bank accounts, mobile money wallets, and other electronic accounts or wallets approved by the Bank of Ghana.
Eligibility of MTOs
EPSPs and DEMIs seeking to partner with MTOs must ensure that:
The partner MTO is a registered entity licensed in its home country to carry out international money transfers.
Where the MTO operates a hub or aggregator model, traffic must only originate from the licensed country of operation and must be submitted to and approved by BoG.
Settlement Account Rules
The Central Bank further outlined strict requirements for settlement of remittances:
EPSPs and DEMIs must maintain a designated settlement account with a local universal bank.
Each entity may partner with up to three banks for inward remittance settlements.
Partner MTOs must credit the nostro accounts of these banks directly for all remittances.
The Local Settlement Account should only be funded from the remittance inflow account, except where a financing arrangement exists with the settlement bank, in which case repayment must also be routed through the settlement account after currency conversion.
The BoG emphasised that these measures are designed to promote transparency, fairness, and accountability in Ghana’s growing remittance sector, while protecting beneficiaries and ensuring compliance with international best practices.
