The Bank of Ghana (BoG) has instructed all financial institutions, including commercial banks and Enhanced Payment Service Providers, to immediately cease their Remittance Termination Partnership with global remittance platform Taptap Send.
The directive, effective from November 8, 2024, was communicated through a letter sent to banks, Dedicated Electronic Money Issuers, Enhanced Payment Service Providers, and the Ghana Interbank Payment and Settlement System (GhIPSS). The suspension will last for one month.
The BoG explained that the decision was prompted by Taptap Send’s operation of a Cedi Remittance Wallet, which it deemed in violation of the country’s Foreign Exchange Act and updated remittance service guidelines. The law requires foreign currencies to be deposited into the accounts of authorized banks and institutions in Ghana, with the equivalent in cedis credited to the recipient’s account.
In its letter, the BoG referenced Section 3 (1) of the Foreign Exchange Act, which mandates that anyone engaging in foreign exchange dealings must be licensed under the act.
The central bank also issued a stern warning to other institutions, emphasizing that any violations would result in severe sanctions. It reiterated that the move aims to ensure strict adherence to the Foreign Exchange Act, serving as a deterrent to other companies operating in the remittance sector.
Taptap Send, which has rapidly gained popularity for its competitive pricing and user-friendly mobile platform, had recently emerged as a preferred choice for remittance to Ghana. The service is known for its low-cost international money transfers, and it has been described as one of the fastest-growing mobile remittance services globally.
The company, a venture-backed start-up with investors such as Reid Hoffman, the Omidyar Network, and Helios, has garnered attention for its innovative approach to remittances, employing talent from top-tier tech companies like Twitter, Uber, and Amazon.
