The Bank of Ghana (BoG) has imposed a one-month suspension on TapTap Send, a leading international remittance platform, restricting its operations with regulated financial institutions in the country. The suspension, which takes effect on November 8, 2024, comes as a result of TapTap Send’s alleged breach of Ghana’s Foreign Exchange Act, 2006 (Act 723) and specific inward remittance guidelines governing payment service providers.
According to a circular issued by the BoG, TapTap Send is accused of failing to comply with regulatory requirements under the Foreign Exchange Act and remittance guidelines. This infraction relates to compliance standards expected from remittance and payment service providers (PSPs) operating in Ghana.
The suspension prohibits TapTap Send from engaging with Ghana’s regulated financial institutions, including enhanced payment service providers (EPSPs), banks, dedicated electronic money issuers (DEMI), mobile money operators, and Ghana Interbank Payment and Settlement Systems (GhIPSS). During this period, TapTap Send cannot facilitate inward remittance transactions through these channels.
The central bank highlighted that the remittance platform operated a “cedi remittance wallet” in contravention of section 3(1) of the Foreign Exchange Act and paragraphs 7(b, d, and e) of the Updated Guidelines for Inward Remittance Services for Payment Service Providers
Under Section 3(1) of Act 723, individuals or entities must hold a license to engage in foreign exchange transactions. Additionally, according to paragraph 7(b) of the remittance guidelines, banks are required to credit the local settlement accounts of EPSPs and mobile money operators with the Ghana Cedi equivalent of inward remittances to beneficiaries within a 24-hour window.
Paragraphs 7(d) and (e) further instruct that settlement banks must restrict transactions exclusively to beneficiary payments, report any observed or suspected violations to the Bank of Ghana, and ensure compliance with Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) regulations.
A cautionary note included in the circular, signed by Samuel Anin on behalf of the Head of the Financial Markets Department, urged all financial institutions involved in remittance services to adhere strictly to regulations. In the near future, the central bank will not refrain from sanctioning institutions that violate the guidelines.
TapTap Send’s suspension may impact remittance flows to Ghana, as the platform has been a popular option for sending money from the Ghanaian diaspora. Users relying on the platform for quick, affordable transfers will need to explore alternative remittance services during the suspension.
The Bank of Ghana’s action underscores its commitment to strict enforcement of remittance laws and guidelines to maintain the integrity of the financial sector. The suspension serves as a reminder to other payment service providers of the importance of compliance with local foreign exchange and payment regulations.
TapTap Send may resume operations after the one-month suspension period, provided it addresses the regulatory concerns and aligns its processes with BoG standards.
