According to information obtained by Techfocus24, the Bank of Ghana has fined a number of Payment Service Providers (PSPs) for onboarding microcredit and microfinance firms without first verifying such organizations’ status with the central bank.
The BoG informed “All Payment Service Providers” in a letter dated April 3, 2024, that certain PSPs had onboarded financial services institutions, including micro-credit and microfinance institutions, without first getting the BoG’s confirmation of their regulatory status and permission to carry out their proposed services.
According to the BoG, the behavior puts the financial ecosystem at serious danger and is in violation of Act 987, the Payment Systems and Services Act of 2019.
Despite the fact that the letter—signed by the BoG’s Head of Fintech and Innovation Office of BoG, Kwame Oppong, omitted to mention the fine. Techfocus24 discovered that several impacted PSPs had been penalized for the infraction, but they refrained from disclosing the precise sums invThe Bank of Ghana has punished several Payment Service Providers (PSPs) for onboarding microcredit and microfinance companies without first confirming the status of these entities with the central bank, according to information Techfocus24 was able to gather.
Before onboarding any PSP, the central advised them to “conduct Enhanced Due Diligence (EDD) on all current and prospective financial service partners.”
It stated that a thorough evaluation of their licensing status and verification of their BoG authorization to engage in the planned activities must be part of the EDD process.
The letter stated that “it is imperative to ensure the safety and integrity of the financial service industry that you give this matter your prompt attention and full cooperation in implementing the necessary compliance.”
