The Bank of Ghana (BoG) has instructed all financial institutions, including commercial banks and Enhanced Payment Service Providers, to cease their Remittance Termination Partnership with the global remittance company, Taptap Send.
This directive was communicated in a letter addressed to all banks, Dedicated Electronic Money Issuers, Enhanced Payment Service Providers, and the Ghana Interbank Payment and Settlement System (GhIPSS).
According to the BoG, this action, effective from November 8, 2024, will be in place for one month.
The BoG explained that the decision was made because Taptap Send was operating a Cedi Remittance Wallet, which is against the country’s Foreign Exchange Act.
The central bank also noted that this operation violated the updated guidelines for inward remittance services. The BoG emphasized that the law requires foreign currencies to be deposited into the accounts of banks and institutions in Ghana, with the cedi equivalent then credited to the receiver in Ghana.
“The Foreign Exchange Act 3 (1) states that a person, shall not engage in the business of dealing in Foreign Exchange without the a licensed issued under this Act,” it said.
Bank of Ghana warning to other institutions
The BoG has issued a strong warning, stating that it will impose severe sanctions on any institution that violates the laws.
They expressed the hope that this action will serve as a significant deterrent to other institutions in the remittance space, ensuring compliance with the country’s Foreign Exchange Act.
Taptap Send and Competition in the Remittance Space
Taptap Send has recently become the preferred choice for many individuals sending money to Ghana.
This preference is largely due to its mobile-based platform and competitive pricing compared to other remittance service providers.
Taptap Send is an app that enables people to send money worldwide at a very low cost.
It has been recognized by industry experts as one of the fastest-growing mobile remittance services globally.
Taptap Send is a venture-backed start-up with investors such as Reid Hoffman, the Omidyar Network, and Helios.
The company is known for hiring top talent from leading tech companies, professional services firms, and industry giants, including Twitter, Yahoo, Uber, Amazon, McKinsey, Bain & Co, Deloitte, KPMG, Cravath, and Vodafone.