Taptap Send: BoG suspends popular remittance platform over regulatory violations

The Bank of Ghana has announced a one-month suspension of Taptap Send’s remittance partnerships with commercial banks, Dedicated Electronic Money Issuers (DEMis), and Enhanced Payment Service Providers (EPSPs) in Ghana.

The suspension, effective from November 8, 2024, follows the discovery of an operational breach involving a Cedi remittance wallet operated by Taptap Send.

The central bank, in a statement released on November 1, 2024, stated that the violation falls under Section 3(1) of the Foreign Exchange Act, 2006 (Act 723), which mandates that businesses dealing in foreign exchange obtain a license.

Additionally, Taptap Send’s activities allegedly contravened sections of the Updated Guidelines for Inward Remittance Services, which specify protocols for crediting local settlement accounts and outline anti-money laundering (AML) and counter-financing of terrorism (CFT) measures.

Key provisions highlighted by the Bank of Ghana include the need for remittance payments to beneficiaries within 24 hours and the obligation of settlement banks to adhere strictly to AML/CFT standards. The guidelines also instruct banks to report any suspected violations to the central bank.

The Bank of Ghana’s Financial Markets Department has warned that further breaches will lead to strict penalties against any institution found in non-compliance.