In a recent development, the Bank of Ghana has taken decisive action against Zeepay Ghana Limited for violating forex regulations. The regulatory body fined Zeepay for breaching clause 7.3(a) of the Inward Remittance guidelines.
The specific violation relates to the settlement bank’s failure to follow the prescribed average interbank exchange rate, as outlined in clause 7.3(a). This clause mandates the use of the average interbank exchange rate published by the Ghana Association of Banks or as specified by the Central Bank for converting settlement funds into the local currency.
As a consequence of this breach, the Bank of Ghana not only imposed a fine but also suspended Zeepay Ghana Limited’s forex license. The suspension, effective from November 27, 2023, to December 8, 2023, is a direct result of the company’s contravention of sections 3(1) and 15(3) of the Foreign Exchange Act, 2006 (Act 723).
This action serves as a stern warning to all participants in the forex market, including banks, forex bureaus, forex brokers, Dedicated Electronic Money Issuers (DEMIs), Enhanced Payment Service Providers (EPSPs), and Money Transfer Operators (MTOs). They are reminded to strictly adhere to applicable forex market regulations and guidelines to avoid facing similar consequences.
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The Bank of Ghana’s swift and decisive action underscores its commitment to maintaining stability and integrity within the forex market. It sends a clear message that regulatory violations will not be tolerated and that appropriate measures will be taken to enforce compliance.
Furthermore, this incident highlights the importance of regulatory oversight in safeguarding the interests of consumers and maintaining the integrity of the financial system. By enforcing regulations effectively, regulatory bodies like the Bank of Ghana play a crucial role in promoting transparency, accountability, and fair practices within the forex market.
Zeepay Ghana Limited, along with other forex market participants, is urged to take this incident as a learning opportunity and to prioritize compliance with regulatory requirements moving forward. Failure to do so may result in further penalties and reputational damage, which could ultimately impact their operations and standing within the industry.
The Bank of Ghana’s actions against Zeepay Ghana Limited underscore the importance of adherence to forex regulations and serve as a reminder to all market participants of the consequences of non-compliance. It is imperative for businesses operating in the forex market to uphold high standards of integrity, transparency, and compliance to ensure the stability and credibility of the financial system.
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