The Bank of Ghana (BoG) has issued a one-month suspension of all partnerships between Taptap Send and electronic payment service providers (EPSPs) and commercial banks in Ghana, effective November 8, 2024.

The regulatory action comes in response to Taptap Send’s operation of a cedi-denominated remittance wallet, which BoG states is in violation of section 3(1) of the Foreign Exchange Act, 2006 (Act 723), as well as sections 7(b), 7(d), and 7(e) of the Updated Guidelines for Inward Remittance Services for Payment Service Providers.

According to the Bank of Ghana, Taptap Send’s actions contravene local laws governing foreign exchange and inward remittance operations. Under section 3(1) of the Foreign Exchange Act, 2006 (Act 723), engaging in foreign exchange transactions without the necessary license is prohibited.

In addition to breaching the Foreign Exchange Act, Taptap Send is also accused of disregarding key provisions of the Updated Guidelines for Inward Remittance Services, which are intended to ensure efficient and transparent remittance practices among EPSPs and their partner banks. Specifically, paragraph 7(b) of these guidelines requires partner banks to credit the local settlement accounts of designated electronic money issuers (DEMI) or EPSPs with the cedi equivalent of inward remittances within 24 hours to ensure timely distribution to beneficiaries.

Further violations were noted in paragraphs 7(d) and 7(e) of the guidelines, which direct settlement banks to refrain from processing requests for any other purposes than payments to beneficiaries. Additionally, banks are mandated to notify BoG of any suspected breaches and to maintain stringent anti-money laundering and counter-financing of terrorism (AML/CFT) compliance protocols. According to BoG, Taptap Send's practices raised concerns that necessitated immediate intervention.

The suspension comes with a strong warning from BoG to other institutions, indicating that further violations of remittance and foreign exchange regulations will be met with severe sanctions. The central bank emphasized its commitment to safeguarding Ghana’s financial system by strictly enforcing regulatory compliance among financial service providers.

Taptap Send, a prominent digital remittance platform with investors including Reid Hoffman, the Omidyar Network, and Helios is expected to cooperate with regulators to address these issues to restore its operational partnerships in Ghana.