The Bank of Ghana (BoG) has announced the commencement of a new reporting requirement for all financial institutions involved in remittance transactions, starting Monday, August 4, 2025.
This directive affects commercial banks, Dedicated Electronic Money Issuers (DEMIs), Enhanced Payment Service Providers (EPSPs), and Money Transfer Operators (MTOs).
In a letter addressed to DEMIs and EPSPs, the central bank specified that all financial institutions operating in the remittance ecosystem must now submit detailed weekly reports on their daily transactions.
These reports must be sent every Monday by noon and must contain logs of individual inward remittance transactions conducted each day from the previous Monday to Sunday. In addition, the institutions are required to report the total daily foreign exchange amounts credited into their respective Nostro accounts.
The Bank of Ghana has made it clear that failure to comply with this directive will not be tolerated. Non-compliance, particularly failure to submit accurate and timely reports, will be deemed a regulatory breach under Section 42 of the Payment Systems and Services Act (Act 987) and Section 93(3)(d) of the Banks and Specialised Deposit-Taking Institutions Act (Act 930).
According to the Bank, any institution found to be flouting the guidelines will be subject to administrative sanctions. The central bank’s stance underscores its renewed commitment to closing loopholes in foreign exchange reporting and controlling illicit remittance activities that undermine the country’s foreign exchange stability.
Why the New Directive?
This move stems from growing concerns over persistent regulatory violations by some market players in the remittance space. The Bank of Ghana disclosed that despite numerous reminders, some DEMIs, EPSPs, and MTOs have continued to engage in practices that breach both the Foreign Exchange Act of 2006 and the updated inward remittance service guidelines.
Key violations identified include:
- The termination of inward remittances through unapproved channels,
- Involvement in unauthorized foreign exchange swap activities,
- Terminating remittances on behalf of institutions without securing prior BoG approval,
- Application of unofficial and unprescribed foreign exchange rates in remittance transactions.
These activities not only distort the flow of remittances into the country but also disrupt foreign exchange market stability.
Speaking on the directive, the Governor of the Bank of Ghana, Dr. Johnson Asiama, stressed the importance of accurate monitoring in protecting the economy. “We have seen that some inflows have reduced since April this year, especially remittance, and we are investigating that as a regulator,” he stated.
Dr. Asiama explained that the new directive is intended to help the Bank track inflows effectively and ensure that all foreign exchange earned abroad is accounted for within the Ghanaian financial system. “We want to ensure that all our foreign exchange gotten abroad are brought into the country,” he emphasized.
The Governor further noted that the increased oversight could also help mitigate the recent depreciation pressures on the cedi by improving the supply of foreign currency in the official system. “This measure is aimed at boosting transparency, increasing FX supply, and curbing market volatility,” he added.
Strengthening Remittance Governance
Remittance inflows remain a critical source of foreign exchange and financial stability for Ghana, especially amidst global uncertainties. In 2024, inward remittances contributed significantly to the balance of payments and household consumption. However, growing non-compliance and opacity in remittance flows have alarmed regulators, prompting this decisive intervention.
With this new regulatory architecture, the BoG aims not only to strengthen compliance but also to ensure that the country derives the maximum benefit from diaspora remittances. This move also aligns with broader economic objectives, such as stabilizing the currency, improving liquidity, and enhancing investor confidence.
As the directive takes off, all eyes will be on the banking and fintech sectors to see how swiftly and effectively they align with the new expectations.
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