The Bank of Ghana, has in a bid to strengthen currency stability and protect inward remittances, unveiled a tougher enforcement regime for the foreign exchange (FX) and remittance market, signalling a significant shift in how banks and payment service providers manage cross-border transactions.
The measures are designed to plug regulatory loopholes, stabilise the currency and protect the inward remittances, which is vital to the country’s foreign exchange inflows.
At the core of the reforms is a strict policy targeting three main infractions: unapproved remittance arrangement terminations, FX swaps in remittances and exchange rates outside the central bank’s reference bands.
Speaking at a meeting with CEO’s of banks in Accra, the Governor of the Bank of Ghana, Dr Johnson Asiama, said, “We will no longer allow hidden practices in the remittance and FX space that distort market signals, erode trust and undermine the cedi.”
“The stability we have fought to restore will not be sacrificed on the altar of non-compliance,” he added.
To enhance oversight, banks and remittance partners must provide weekly inward remittance reports, including transaction-level data and FX credits, giving the central bank timely visibility into remittance flows.
The rules are backed by robust enforcement mechanisms, with non-compliance potentially leading to fines, license suspensions and public disclosure of systemic breaches under relevant legislation, including the Payment Systems and Services Act, 2019 (Act 987) and the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930).
Blind spots
“This is not a suggestion — it is a directive that we expect accurate, timely and complete reporting. The era of blind spots in remittance flows is over,” he said.
The Governor said transparency in remittance operations is not simply a regulatory goal but a national economic imperative.
“Remittances are a lifeline for the Ghanaian economy. Every cedi of that inflow must be traceable, compliant and free from manipulation,” he said.
The new rules make it clear that remittance compliance is a board-level responsibility, necessitating banks to bolster their reporting systems, ensure FX rate compliance and scrutinise partners.
“If you play in the FX and remittance space, you must play by the rules, or you will not play at all,” Dr Asiama warned.
The new reality for banks and remittance operators is that compliance is a C-suite issue, requiring significant investment in reporting systems, automation, and audit trails to ensure transparency and accountability in remittance transactions.
This means that banks may also have to recalibrate their relationships with international money transfer operators to ensure that contractual terms align with the BoG’s prescriptions.
This implies that compliance is now a critical concern that demands the attention and oversight of a bank’s top leadership.
Remittance drop
Analysts say the cedi’s recent sharp appreciation has resulted in a significant decline in remittances, with inflows plummeting by almost 50 per cent, impacting funding for local projects.
Dr Asiama said what used to be a steady flow of remittances for projects has suddenly stopped, and there has been a near 50 per cent decline in remittance inflows.
The policy shift comes against a backdrop of heightened sensitivity over the cedi’s performance and the role of forex liquidity in supporting Ghana’s post-IMF-programme recovery. While remittances have been a steady inflow, often cushioning external shocks, irregularities in how they are priced, settled, and reported have raised red flags at the BoG.
“With the appreciation of the cedi so far, Ghanaians are interpreting this differently, and it is part of the problem. People who used to send remittances for projects have suddenly stopped, and so we have observed a near 50 per cent decline in remittance inflows,” Dr Asiama stated.
While the central bank sees the potential for a more transparent and predictable forex market with improved confidence, industry experts warn that the compliance burden may be too great for smaller banks and fintech operators, potentially accelerating consolidation in the sector.
