Do you use digital platforms to send money to Ghana? The Sika Card, which enabled holders to conduct digital payments, was first introduced to Ghana in 1997 by the then-Social Security Bank. The state passed e-zwich, an interoperable payment system, in 2008 for use in banks and savings and loans companies to perform cashless transactions.
Ghana’s financial sector has since evolved to embrace the use of smartphones and apps in transactions. There are currently over 11 million active users of mobile payment systems, with banks reporting that electronic and digital platforms account for over 80% of their transactions.
The Data Protection Commission and the Financial Intelligence Center may require fintech companies to register, as mandated by the Data Protection and Anti-Money Laundering Acts, respectively.
Any digital money transfer service provider, digital currency service provider, or body corporate regulated under the Banks and Specialised Deposit-Taking Institutions Act of 2016 (Act 930) must be licenced by the BoG to provide online money transfer service to Ghana and vice versa under the Payment Systems Act. Fintech companies must work under the Ghana Technology Chamber until March 2021, after which they must apply for licences.
What Are The Requirements For A Money Transfer Service Provider To Operate?
A business must have at least a 30% equity participation of a Ghanaian company or individual as a shareholder to receive a licence as a money transfer Service Provider or Dedicated Electronic Money Issuer (either or both referred to as a “Service Provider”). It also has to retain a certain level of paid-up capital, as calculated by the BoG.
The Board of Governors has yet to set and publish the necessary minimum capital, and no companies have been licenced. A Service Provider’s board of directors must have at least three members. At least two of these individuals must be Ghanaians. And one of the two tenants must be the CEO. When you fulfil the above criteria, you become an official service provider for money transfer to Ghana and outside Ghana.
The Bottom Line:
Sending money to Ghana online has significant potential for Ghana’s economic growth. To maximise the benefits of this, these inflows must be routed through the structured remittance market, which allows for more precise data recording and provides policymakers with more credible data to establish monetary and financial policies and regulations.