The Bank of Ghana (BoG) has issued a stern warning to financial institutions and money transfer operators over persistent breaches of the country’s foreign exchange laws and remittance guidelines.

In a public notice dated July 29, 2025, the central bank said it has observed ongoing non-compliance with the Foreign Exchange Act, 2006 (Act 723), as well as the Updated Guidelines for Inward Remittance Services, despite repeated warnings.

Among the violations identified are the termination of inward remittances through unapproved channels, unauthorised foreign exchange swaps related to remittance operations, processing remittances for unapproved institutions, and the use of unprescribed foreign exchange rates.

“The Bank will impose sanctions on any institution found culpable and terminate the remittance partnerships of all money transfer operators whose activities are inconsistent with the approved guidelines,” the statement cautioned.

The BoG also emphasized the need for strict adherence to existing protocols, including the funding of local settlement accounts in line with Section 7.1 (c) of the guidelines, and disbursing all funds through these accounts as required under Section 7.2 (a). DEMIs and Enhanced Payment Service Providers (EPSPs) must ensure that their pre-funding arrangements with settlement banks comply with Section 7.2 (b).

To strengthen transparency and oversight, the Bank has mandated that all banks, DEMIs, and EPSPs submit weekly reports on each MTO. These reports must include a daily breakdown of all inward remittance transactions and details of the foreign exchange credited to their Nostro accounts.

The BoG stressed that failure to submit accurate and timely reports constitutes a regulatory infraction under Section 42 of the Payment Systems and Services Act (Act 987) and Section 93(3)(d) of the Banks and Specialised Deposit-Taking Institutions Act (Act 930), and will attract appropriate administrative penalties.

This directive signals a renewed push by the central bank to tighten regulatory oversight in the remittance and foreign exchange sectors, as part of broader efforts to ensure forex market stability and enhance economic recovery.

Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has affirmed that he is under no pressure to unilaterally reinstate the licences of banks whose operations were terminated during the country’s banking sector cleanup.

Addressing journalists at the 125th Monetary Policy Committee (MPC) press conference held in Accra on Wednesday, July 30, Dr. Asiama responded to a question from Citi Business News’ Nerteley Nettey Adjaho, stressing that any potential reinstatement must adhere strictly to legal and institutional protocols.

“Not at all,” Dr. Asiama stated in response to whether he felt pressured to restore licences. He emphasized that such decisions fall beyond the discretion of the Governor and must be guided by legal rulings and the approval of the Bank’s Board of Directors.

“Remember, the resolution framework is still in effect. When I assumed office, substantial progress had already been made. Some of the cases are currently in court, while others are going through settlement procedures. The process is ongoing, and we are committed to following it accordingly,” he noted.

Dr. Asiama further elaborated on the steps required for any potential reinstatement:

“If, for instance, a court issues a directive, the Board of the Bank of Ghana would review and act accordingly. However, from my position as Governor, there is absolutely no pressure to restore any licence unilaterally.”

This clarification comes in the wake of a political promise made by former President John Dramani Mahama during the 2024 general election campaign. In his acceptance speech at the University of Development Studies on May 15, 2024, after securing the National Democratic Congress (NDC) presidential nomination, Mr. Mahama pledged to enhance local participation across key sectors including banking, telecommunications, tourism, mining, agriculture, and manufacturing as part of efforts to grow the economy and create sustainable jobs for the youth.

The banking sector cleanup, launched in 2017, was aimed at sanitizing and stabilizing Ghana’s financial system. As part of the reform, the central bank raised the minimum paid-up capital requirement for commercial banks from GHS120 million to GHS400 million. This regulatory adjustment led to the collapse or consolidation of several financial institutions that failed to meet the new capital threshold.

In total, the Bank of Ghana revoked the licences of nine local banks, 23 savings and loans companies, 347 microfinance institutions, 39 finance houses, and 53 fund management firms.

Among the collapsed banks were UniBank, The Sovereign Bank, The Beige Bank, Premium Bank, The Royal Bank, Heritage Bank, Construction Bank, UT Bank, and Capital Bank.

While the central bank defended the move as essential to restoring confidence and resilience in the financial sector, critics argued that several of the affected institutions could have been restructured or supported to preserve jobs and maintain indigenous ownership within the sector.

Finance Minister Dr. Cassiel Ato Forson has revealed that the much-touted “Gold for Oil” policy under the previous government was not a true barter arrangement as publicly claimed.

Speaking on JoyNews’ PM Express, Dr. Forson dismissed the policy as a facade, stating that the Bank of Ghana (BoG) simply paid suppliers in dollars—contrary to the narrative that Ghana exchanged gold directly for petroleum products.

“It didn’t work properly. The Bank of Ghana was paying in cash—dollars—not gold. There was never any gold-for-oil barter. Never,” he emphasized in a direct response to host Evans Mensah.

The former administration had promoted the policy as a groundbreaking solution to stabilize the cedi by reducing demand for foreign exchange. However, Dr. Forson said the reality was far less innovative.

He explained that a supplier based in the United Arab Emirates provided fuel through the Chamber of Bulk Oil Distributors (CBOD). The CBOD paid in cedis, and the BoG converted that into dollars to complete the transaction. “Pure trade. Nothing like the barter they portrayed,” he said.

Confirming with BoG officials, Dr. Forson noted that although the central bank had been increasing its gold reserves, it had no direct link to the oil purchases.