The Bank of Ghana (BoG) has instructed all financial institutions, including commercial banks and Enhanced Payment Service Providers, to end their remittance partnerships with global payment platform Taptap Send.

The directive, effective from 8 November 2024 and lasting for one month, comes in response to Taptap Send’s alleged breach of Ghana’s Foreign Exchange Act by operating a cedi-based remittance wallet. In a letter addressed to banks, Dedicated Electronic Money Issuers, and the Ghana Interbank Payment and Settlement System (GhIPSS), BoG clarified that remittance services must adhere to regulations requiring foreign currencies to be deposited into local financial institutions, with cedi equivalents credited to recipients.

BoG’s notice warned that it will impose severe sanctions on any institution found violating these regulations, with officials saying the move aims to deter similar breaches in the future.

Taptap Send, a mobile-based remittance service popular for its low fees, has rapidly grown in Ghana’s remittance market, attracting investments from Reid Hoffman, the Omidyar Network, and Helios.

Source:TheDotNews