In a statement released on February 20, 2025 in Accra and signed by its Coordinator, Andrews Tay, the Chamber described the claims as “misleading and potentially damaging to the financial ecosystem
COT noted that fintech firms involved in remittance processing operate under strict regulatory guidelines set by the Bank of Ghana (BoG) and consequently, cannot circumvent the established checks and balances.
“These companies submit monthly transaction reports of inward remittances, which are reviewed to ensure transparency and compliance,” the statement noted.
A number of industry watchers – chiefly, Dr. Richmond Atuahene, a banking consultant – have argued that as much as US$10.6 billion in remittances cannot be accounted for during the period under consideration, with discrepancies in official figures often cited.
In June last year, the central bank denied accusations of sums, in multiples of the US$3 billion from the International Monetary Fund (IMF) had been withheld by Money Transfer Organisations (MTOs).
Among the BoG’s arguments were the annual increase in remittance values and its assessment of its regulatory oversight, among others.
However, concerns persisted and last week, the apex bank, under new leadership , initiated an audit of remittances for the final quarter of 2024, a year when inward remittance moved up to US$6.65 billion. This reignited calls for further audits.
Reacting further, the Chamber stressed that fintechs, like all financial service providers, adhere to established reporting and reconciliation processes.
The organisation also stated that fintech firms do not directly handle foreign exchange inflows.
Explaining the process, it stated that: “Licensed banks receive the forex inflows from Money Transfer Operators (MTOs). The banks convert the forex to cedis at regulated exchange rates. Fintech companies then disburse the cedis to recipients through mobile money wallets or other digital channels.”
This structure, the Chamber explained, ensures that forex flows remain within the formal banking sector, with banks managing and reporting all foreign exchange transactions.
The Chamber also underscored that fintechs work within a broader financial ecosystem that includes banks and e-money issuers.
“Any discussion about remittance flows must, therefore, consider the entire ecosystem rather than focusing solely on fintechs,” the Chamber said.
Ghana’s digital remittance model, the statement continued, is in line with global trends. “The termination of remittances through digital platforms is not unique to Ghana. Many African and emerging economies have adopted similar models to improve financial inclusion, lower remittance costs, and enhance transaction security.”
COT pointed to international data indicating that mobile money remains the most cost-effective method of sending remittances. “Globally, the average total fee for sending US$200 via mobile money was 3.54 percent in 2024, in contrast to the global average fee of 6.35 percent for all methods for the same US$200 transfer. Ghana’s average cost for the same amount stood at 6.4 percent as at Q1 2024.”
COT warned that the spread of unverified claims could harm the country’s fintech sector. “Ghana has built a strong reputation as a fintech leader in Africa, attracting investment and innovation in digital finance. Unverified reports of missing funds can create unnecessary panic and discourage investment in Ghana’s fintech sector.”
The Chamber called for a structured and transparent review of remittance operations to maintain confidence in the system.
As a way forward, the Chamber advocated for an inclusive approach to reviewing the remittance ecosystem. It expressed support for “a broad-based industry review that considers all stakeholders in the remittance value chain, including banks and e-money issuers.” It also called for “stronger collaboration among fintechs, banks, and regulators to enhance transparency and efficiency and eliminate misconceptions about how remittance transactions are managed.”
The COT reaffirmed its commitment to maintaining industry best practices. “Ghana’s fintech sector remains committed to upholding the highest standards of compliance, security, and operational excellence. We remain open to discussions that promote the integrity and growth of the financial ecosystem.”
The Chamber called for continued stakeholder collaboration to ensure that “Ghana’s remittance infrastructure continues to support financial inclusion, economic growth, and forex stability.”
Source: thebftonline.com
