Bank of Ghana Suspends Taptap Send Partnerships Over Regulatory Violations
The Bank of Ghana has announced a suspension of Taptap Send’s partnerships with commercial banks and Enhanced Payment Service Providers (EPSPs) in Ghana. This one-month suspension, effective from November 8, 2024, follows regulatory breaches related to Taptap Send’s operations in the country.
According to the Bank of Ghana, Taptap Send has been operating a Ghanaian cedi remittance wallet in violation of the Foreign Exchange Act, 2006 (Act 723) and specific guidelines for Inward Remittance Services for Payment Service Providers. The Bank highlighted three main areas of concern:
1. Unauthorized Foreign Exchange Dealings: The Foreign Exchange Act strictly prohibits any entity from engaging in foreign exchange transactions without a license. The Bank of Ghana has cited Taptap Send for non-compliance in this regard.
2. Settlement Violations: As per the guidelines, partner banks are required to settle remittance amounts in Ghana cedis to beneficiaries’ accounts within 24 hours. The guidelines also mandate reporting of any suspicious or unauthorized transactions to the Bank of Ghana to ensure proper oversight.
3. Anti-Money Laundering and Compliance Requirements: The guidelines emphasize the need for partner banks to comply with Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) requirements, ensuring thorough checks on all inflows and outflows in remittance transactions.
In response to these breaches, the Bank of Ghana has taken a firm stance, emphasizing that it will not hesitate to impose severe penalties on any institution found in further violation of these rules. This action demonstrates the Bank’s commitment to maintaining financial stability and regulatory compliance in Ghana’s remittance and foreign exchange sectors.
The suspension sends a strong message to all financial service providers in the country, reiterating the importance of adhering to regulatory standards and ensuring transparent and lawful operations within Ghana’s financial ecosystem.
