Zeepay begins negotiations with BoG on suspension of its forex licence
Zeepay explained that while its forex license faces suspension, its general operating license remains unaffected by the regulatory decision
Zeepay Ghana Limited has confirmed that it has commenced discussions with the Bank of Ghana (BoG) to resolve the temporary suspension of its forex license.
The Central Bank took this action, attributing it to Zeepay’s non-compliance with the prescribed use of the average interbank exchange rate for converting settlement funds into the local currency, as outlined by both the Ghana Association of Banks and the Bank of Ghana.
In a statement, issued today 7 December 2023, Zeepay explained that while the forex license faces suspension, its general operating license remains unaffected by the regulatory decision.
“With Reference to the recent Bank of Ghana Notice (Notice No. BG/GOV/SEC/2023/20) dated November 20, 2023, and titled ‘Fine and Suspension of Forex Licence of Zeepay Ghana Limited,’ we write to inform the general public that we are currently in discussions with the Bank of Ghana to resolve the issues raised in the Notice” the Zeepay statement read.
“However, please note that our general operating licence was not expressly impacted by the Bank’s recent decision. We will ensure strict compliance with all regulations and guidelines,” the statement further read.
BoG suspension
The Bank of Ghana (BoG) suspended the forex licence of fintech company Zeepay, and fined it for breaching clause 7.3(a) of the Inward Remittance law. A statement issued by BoG on Monday (20 November) said the suspension will take effect from 27 November to 8 December.
“The Bank of Ghana has fined Zeepay Ghana Limited for breaching clause 7.3(a) of the Inward Remittance. 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”.
“Further, the Bank has suspended the Forex Licence of Zeepay Ghana Limited from 27th November 2023 to 8th December 2023, for violation of sections 3(1) and 15 (3) of the Foreign Exchange Act, 2006 (Act 723),” the BoG statement said.
“By this Notice, forex market players including banks, forex bureaus, forex brokers, Dedicated Electronic Money Issuers (DEMIs), Enhanced Payment Service Providers (EPSPs) and Money Transfer Operators (MTOs) are hereby cautioned to adhere strictly to the applicable forex market regulations and guidelines,” the BoG statement added.
Zeepay
Founded in 2014, Zeepay Ghana Ltd has established itself as a key player in the digital remittance termination and mobile financial services sector across Africa and the Caribbean. The company proudly operates in over 20 countries globally and boasts strategic partnerships with major remittance entities. Despite the regulatory challenges, Zeepay is keen on maintaining its reputation for adherence to the highest standards of compliance.
Reporting by Wilberforce Asare in Accra
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