Financial Analyst and Banking Consultant, Dr. Richmond Atuahene is pushing for a stricter enforcement and regulation of the financial technology companies (fintechs) and Money Transfer Operators (MTOs) operating in the country’s remittances sector.
This call has become necessary after discrepancies in data from the Bank of Ghana and World Bank revealed that the country lost huge foreign exchange from inward remittances worth US$ 10.6 billion. While the World Bank reports $22.23 billion from 2019 to 2023, the Bank of Ghana was able to capture only $9.78 billion within the period.
The difference of about $10.6 billion, Dr. Atuahene reveals was illegally externalized by 11 fintech companies. The firms kept the forex outside the country and paid recipients with local currency contrary to law. This situation plays a significant role in the depreciation of the cedi.
In a policy brief on remittances in Ghana copied to The High Street Journal, Dr. Atuahene is urging the government to immediately review the Payment Service and Systems Act 2019 (Act 987) and the Bank of Ghana’s (BoG) guidelines on inward remittance settlement processes to ensure full compliance with the Foreign Exchange Act 2006 (Act 723).
He argues that all Money Transfer Operators (MTOs) and fintech companies must be strictly monitored to prevent externalization of remittance inflows, which has deprived the country of critical foreign currency.
Dr. Atuahene says the Bank of Ghana must trace, track, and capture all foreign exchange accumulated from inward remittances by newly established MTOs and fintech firms. He cites Section 15(4) of the Foreign Exchange Act 2006, which makes it an offense for exporters to fail to repatriate proceeds from merchandise exports, suggesting similar measures be applied to remittance inflows.
The BoG, he says must establish a dedicated department to oversee all inward remittances while deploying cutting-edge digital tools to monitor the fintech companies’ forex transactions. He believes this will enable BoG have real-time visibility over remittance flows and prevent under-declaration and misreporting.
The financial analyst further calls for forensic audits of all fintech and MTO nostro accounts by international audit firms. He insists that the finance ministry and the BoG must mandate these companies to reimburse the central bank for all foreign exchange held outside the country between 2019 and 2023.
With Ghana facing a critical foreign exchange shortfall, Dr. Atuahene stresses that stringent regulatory enforcement, advanced digital tracking, and forensic audits are imperative to reclaim billions of dollars lost to fintech externalization. He warns that failure to act swiftly will further weaken the nation’s economy, exacerbating cedi depreciation and limiting the government’s ability to finance essential imports.
