By Elorm Desewu
The Bank of Ghana, (BoG), the statutory regulator of the banking industry has issued new guidelines for the regulation of inward money transfer services provided by Dedicated Electronic Money Issuers (DEMIs) and Enhanced Payment Service Providers (EPSPs) with Mobile Transfer Operators (MTOs).
This is pursuant to Section 4(1)(e) of the Bank of Ghana Act, 2002 (Act 612) as amended, Section 2(3) of the Foreign Exchange Act, 2006 (Act 723) and Section 10(2)(i) of the Payment Systems and Services Act, 2019 (Act 987).
These guidelines seek to provide a framework to guide DEMIs and EPSPs in partnering with MTOs to deliver inward remittance services to beneficiaries; stipulate the minimum standards and requirements for providing inward remittance services; provide competitive market conditions for the inward remittance industry through the use of innovative digital payment channels; ensure adherence to Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) Law and Guidelines; and promote compliance with consumer protection and recourse mechanisms.
The guidelines cover inward international remittance services provided by DEMIs and EPSPs in partnership with MTOs that are terminated into beneficiaries’ bank accounts, mobile money wallets and any other electronic account or wallet approved by the Bank of Ghana, and applies to the following entities: dedicated Electronic Money Issuers and enhanced Payment Service Providers.
Remittance is a significant source of external financing and a major contributor to national income. Many Ghanaian families depend on remittances from relations living abroad to cater for various expenses including education, health, rent, housekeeping, and utilities. Ghanaians in the diaspora also send money home to fund the construction of residential and/or commercial buildings.
Remittances therefore contribute to the economic well-being of Ghanaians. Over the years, Money Transfer Operators (MTOs) and banking agents have facilitated funds transfer from abroad to beneficiaries in Ghana, which are accessed largely through banking halls. Mobile money and other digital channels which have been made available by payment service providers are now providing extensive, affordable, convenient, and flexible alternative means for accessing remittances by beneficiaries.
In furtherance of its commitment to creating an enabling environment for remittance without risking the stability of the financial system, the Bank of Ghana publishes this Guideline for Dedicated Electronic Money Issuers (DEMIs) and Enhanced Payment Service Providers (EPSPs) that intend to partner with MTOs to terminate inward remittances.