Ghana’s Central Bank suspends Wise, LemFi and other IMTOs for operating without regulatory approval

The Bank of Ghana (BoG) has suspended several international money transfer companies, including Wise, Zeepay, XOOM, LemFi, and others, from sending remittances into the country. This suspension is a result of the BoG’s efforts to enforce the Payment Systems and Services Act, 2019 (Act 987), which regulates payment services in Ghana.

The central bank asserts that Wise and the mentioned companies are operating without the necessary license or authorization to function as electronic money issuers or payment service providers in Ghana. Additionally, the BoG alleges that these companies are in violation of the Foreign Exchange Act, 2006 (Act 723), which prohibits the use of foreign currency as a medium of exchange within Ghana.

The implications for customers are substantial, as they are now unable to utilize Wise and other suspended international money transfer services to send or receive money to and from Ghana. To address this situation, the BoG recommends that customers explore alternative channels that are licensed and regulated by the central bank. These alternatives include traditional banks, mobile money operators, and other licensed remittance companies.

For customers needing to send or receive money across borders, several alternative options are available:

1. Bank Transfers: Utilize bank accounts for wire transfers or SWIFT transfers to facilitate cross-border transactions.
2. Remittance Companies: Explore services offered by licensed and regulated remittance companies such as Western Union, MoneyGram, Ria, WorldRemit, or Xpress Money. These companies provide options for cash pick-up or bank deposit, ensuring a secure and compliant means of transferring funds.

As the BoG aims to uphold regulatory standards and safeguard the financial ecosystem, customers are encouraged to choose alternatives that comply with Ghana’s financial regulations. The suspension serves as a reminder of the importance of utilizing licensed and authorized channels for international money transfers to ensure the security and legality of financial transactions.