NEWS

Bank of Ghana Halts Money Transfers with Taptap Send: Remittance Partnership Suspended

Bank of Ghana Suspends Taptap Send’s Remittance Partnership: Money Transfers to Ghana Halted

The Bank of Ghana (BoG) has suspended Taptap Send’s remittance termination partnership, effectively disabling money transfers to Ghana through the platform for the next month. This temporary halt impacts anyone attempting to send funds via Taptap Send, which will remain inactive until early December.

On November 1, 2024, the BoG announced the suspension, effective from November 8, citing regulatory breaches by Taptap Send. According to the BoG, Taptap Send’s operation of a cedi remittance wallet violated specific provisions of Ghana’s Foreign Exchange Act, 2006 (Act 723), as well as clauses in the Updated Guidelines for Inward Remittance Services for Payment Service Providers. These guidelines are designed to regulate foreign exchange transactions and ensure compliance with anti-money laundering and counter-terrorism financing (AML/CFT) standards.

The Foreign Exchange Act restricts unauthorized entities from conducting foreign exchange-related activities without a license. In addition, the BoG’s guidelines outline strict instructions for Electronic Payment Service Providers (EPSPs) and partner banks, including the requirement to settle incoming remittances in cedis within 24 hours. Partner banks are also prohibited from using remittance funds for purposes other than direct payments to beneficiaries and are mandated to report any suspicious transactions to the BoG.

In response, Taptap Send has notified its users via its app, stating: “Transfers to Ghana are temporarily disabled due to a directive from the Bank of Ghana. We apologize for the inconvenience and appreciate your patience as we work to restore the service you know and love.” The company expressed its commitment to resolving the issue and restoring transfer services as soon as possible.

The BoG has warned it will impose severe penalties on any financial institution found in breach of the country’s remittance regulations in the future. This suspension serves as a reminder of the BoG’s ongoing efforts to enforce compliance and maintain the integrity of foreign exchange practices within Ghana.