BoG directs financial institutions to halt remittance termination partnership with Taptap Send

The Bank of Ghana (BoG) has directed all financial institutions in the country, including commercial banks and All Enhanced Payment Service Providers to halt Remittance Termination Partnership with global remittance giant Taptap Send.

This was captured in letter to all banks, Dedicated Electronic Money Issuers and Enhanced Payment Service Providers, as well as the Ghana Interbank Payment and Settlement System (GhIPSS).

The BoG in the letter added that the action which took effect from November 8, 2024 will last for one month.

The BoG explained that it took the decision because Taptap Send was operating a Cedi Remittance Wallet, which violated the country’s Foreign Exchange Act.

According to the central bank, the act was also in violation of the updated guidelines for inward remittance service.

Outlining the breaches, the BoG stated that the law demands that foreign currencies are deposited into the accounts of the banks and institutions in Ghana and then the cedi equivalent 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 warned that it will not hesitate to severely sanction any institution which breaches the laws.

We therefore hope that this move will go a long to serve as a deterrent to other institutions in that space when it comes to complying with the country’s Foreign Exchange Act, it said.

Taptap Send and competition in the remittance space

Taptap Send had in recent times become the choice for many people sending money into Ghana.

This is due to the mobile based platform, and its competitive pricing compared to the other remittance service providers.

Taptap Send is an App that allows people to send money across the world at very low cost.

It has been described by some industry watchers as one of the fastest growing mobile remittance service in the world.

Taptap Send is a venture-backed start-up with investors including Reid Hoffman, the Omidyar Network, and Helios.

The company prides itself in hiring exceptional talent from a wide variety of top-tier tech companies, professional services firms, and industry leaders, including Twitter, Yahoo, Uber, Amazon, McKinsey, Bain & Co, Deloitte, KPMG, Cravath, and Vodafone