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BusinessUnauthorized lending platforms will be clamped down - BoG

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Unauthorized lending platforms will be clamped down – BoG

The Bank of Ghana (BoG) has reaffirmed its commitment to cracking down on unauthorized lending apps that employ unethical practices to recover debts, including the illegal publication of defaulters’ personal information.

Addressing participants at the MTN Ghana Mobile Money @15 Fintech Stakeholders’ Forum, Kwame Oppong, the Director of Fintech at the BoG, underscored the central bank’s zero-tolerance policy towards activities that destabilize the financial sector.

He made it clear that the Bank of Ghana is determined to root out these illegal operations, which have been associated with extreme consequences, including suicides by those unable to repay loans.

“It is a crime to threaten loan defaulters with the publication of their pictures and confidential data,” Mr Oppong stated firmly.

He warned that no product or service should be introduced into the Ghanaian financial space if it poses a threat to the sector’s stability or jeopardizes the livelihoods of individuals and businesses.

In recent months, a troubling trend has emerged where unauthorized lending apps resort to extreme measures, such as publicly shaming borrowers by sharing their images and private information.

Mr Oppong condemned this practice, questioning how such methods could be justified. “How is this a way of making a living—by putting people on suicide watch, threatening to announce to the world that they owe you?” he asked.

To combat these illegal activities, the BoG is collaborating with the Economic and Organised Crime Office (EOCO) and other security agencies to take action against offenders.

“This is why the Bank of Ghana, in partnership with EOCO and security agencies, conducted a raid that led to the arrest of over 200 individuals, including foreigners,” Oppong recalled.

At the same forum, Shaibu Haruna, the Chief Executive of Mobile Money Limited, reiterated MTN’s commitment to enhancing safety measures and increasing education on mobile money fraud. He emphasized that building trust among customers is a top priority as the company continues to develop its services.

The MTN Mobile Money @15 Fintech Stakeholders’ Forum, held under the theme “Building Trust and Cooperation Among Stakeholders: How to Maximize the Impact of Emerging Technologies for the Promotion of Financial Inclusion,” brought together key players in the financial technology sector. The event focused on the impact of new technologies on the financial industry and the importance of strong regulatory frameworks to foster trust among users and stakeholders.

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