BoG fines, suspends Zeepay over forex regulation breaches

The Bank of Ghana has imposed fines on Zeepay Ghana Limited for violating clause 7.3(a) of the Inward Remittance regulations.

This clause stipulates the use of the average interbank exchange rate published by the Ghana Association of Banks for converting settlement funds into the local currency (cedi).

Clause 7.3(a) states as follows that the settlement bank shall “use the average interbank exchange rate published by the Ghana Association of Banks on the day the transfer is received or as prescribed by Bank of Ghana for the conversion of settlement funds into local currency”.

The regulatory measures come as a consequence of Zeepay Ghana Limited’s failure to comply with the prescribed exchange rate procedures outlined in the Foreign Exchange Act, 2006 (Act 723).

Additionally, Zeepay’s Forex Licence has been suspended by the BoG effective from November 27th to December 8th, 2023. The forex license suspension reflects the severity of the breaches involving sections 3(1) and 15(3) of the aforementioned Act.

According to the Bank of Ghana, the suspension and fine of Zeepay 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).

The BoG urges market players to meticulously adhere to existing regulations and guidelines to maintain the integrity of the forex market. The repercussions faced by Zeepay Ghana Limited underscore the importance of strict compliance in the ever-evolving financial landscape.