Accra: The Bank of Ghana (BoG) has announced the implementation of more stringent measures targeting Banks, Dedicated Electronic Money Issuers (DEMIs), Enhanced Payment Service Providers (EPSPs), and Money Transfer Operators (MTOs) in an effort to combat non-compliance with inward remittance guidelines.

According to Ghana News Agency, the central bank's decision follows persistent violations of the Foreign Exchange Act, 2006, and the Updated Guidelines for Inward Remittance Services by Payment Service Providers, despite previous warnings. The issues identified include the termination of inward remittances through unapproved channels and engagement in Foreign Exchange Swaps within the context of Inward Remittance Business.

Additionally, the Bank of Ghana reported other infractions, such as the unauthorized termination of remittances on behalf of institutions and the use of unapproved Forex Exchange rates. The BoG has reiterated its commitment to penalizing any institution found in violation and to ending remittance partnerships with MTOs whose operations do not comply with the approved guidelines.

To ensure compliance, the BoG has emphasized that funding of the Local Settlement Account must adhere strictly to section 7.1 (c) of the Updated Guidelines for Inward Remittance Services by Payment Service Providers. Moreover, the central bank mandated that all disbursements should be conducted from the Local Settlement Account as outlined in section 7.2 (a) of the guidelines.

The central bank also instructed DEMIs/EPSPs to ensure that pre-funding arrangements with the Settlement Bank align with section 7.2 (b) of the Updated Guidelines for Inward Remittance Services by Payment Service Providers. In pursuit of transparency and accountability in the foreign exchange and remittance sector, all Banks, DEMIs, and EPSPs are now required to submit weekly reports per MTO.

These reports must include daily individual inward remittance transactions logs and the corresponding daily sums of foreign exchange credited into respective Nostro accounts. The Bank of Ghana emphasized 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 be met with appropriate administrative sanctions.