The Bank of Ghana (BoG) has instructed all financial institutions within the country, including commercial banks and Enhanced Payment Service Providers, to suspend their remittance termination agreements with international remittance provider Taptap Send.

The directive, outlined in a letter to banks, Dedicated Electronic Money Issuers, and the Ghana Interbank Payment and Settlement System (GhIPSS), went into effect on November 8, 2024, and will remain active for one month.

According to BoG, the suspension stems from Taptap Send’s operation of a Cedi Remittance Wallet, a service the central bank contends violates Ghana's Foreign Exchange Act.

The bank cited the law's stipulation that foreign currency deposits be made directly into accounts held by Ghanaian financial institutions, with the equivalent amount then credited to recipients in the local currency.

Section 3(1) of the Foreign Exchange Act expressly prohibits engaging in foreign exchange transactions without a licensed permit.

BoG emphasised that it will impose strict penalties on institutions that fail to comply with Ghana’s currency regulations.

"We hope this action will act as a deterrent to any entity considering non-compliance with the Foreign Exchange Act," the central bank stated.

Taptap Send has gained significant traction among Ghanaians abroad, who favour the app for its mobile-based interface and competitive fees.

Backed by investors such as LinkedIn co-founder Reid Hoffman, the Omidyar Network, and Helios, Taptap Send has rapidly expanded within the mobile remittance market.

Known for its lean pricing and ease of use, the app has been positioned as one of the fastest-growing mobile remittance platforms globally.

Its team includes experienced professionals from top tech and consulting firms, including Twitter, Uber, Amazon, and Deloitte.

As the suspension impacts Ghana’s competitive remittance market, observers await whether the regulatory action will affect Taptap Send's market position in the region.