The Bank of Ghana has clarified the role of FinTechs in the remittance space.
In an explainer on the remittance framework shared on the Bank’s social media handle, the Bank emphasized that the local FinTech companies authorised by the central bank do not mobilize FX from abroad.
Rather, it is the Money Transfer Organization based abroad that receive remittances from abroad.
The mobilized funds are then paid into the nostro account of the local partner banks with the FinTechs involved in the downstream payment to beneficiaries.
However, recent comments by some market watchers had wrongly blamed FinTechs for withholding FX abroad.
This erroneous impression is corrected by the BOG in the explainer. The confusion seems to stem from the mixing up of the role of MTOs and FinTechs. Watch the explainer.
