LemFi has been forced to suspend its operations in Ghana following a notice from Bank of Ghana (BoG) that it has no operational license in the country.
The remittance startup halted its operations one week after the Central Bank identified LemFi as one of eight fintechs operating without the necessary regulatory approvals.
In Ghana, like many other countries, companies can’t trade foreign currency without a licence. If caught doing so, they stand to face penalties of up to seven hundred penalty units (GHS8,400), imprisonment for a maximum of eighteen months, or both.
In this case, LemFi was barred from operating in Ghana along with other operators like Wise and PayPal. The Central Bank of Ghana also warned all financial institutions in the country to stop dealing with these fintechs.
Following LemFi’s suspension, users will no longer be able to send money to banks or mobile money wallets in the country.
A source familiar with the company’s operations said that it plans to work with Ghanaian regulators to obtain the necessary licences.