Fintechs Reject Blame Over Missing $10.6 Billion in Remittances

Sections of the local media have raised concerns about a staggering $10.6 billion in unaccounted remittances over the past five years, claiming that fintech companies played a role in bypassing forex regulations. The reports suggest that out of an estimated $4.7 billion remitted annually, only $2.8 billion has been officially recorded by the central bank.

Fintechs have been accused of facilitating a system that allows forex to be held abroad rather than contributing to national reserves and strengthening the local currency. In response, calls have emerged for the Bank of Ghana to conduct a forensic audit of fintech operations in the remittance sector.

Chamber of Technology Dismisses Allegations

In a statement, the Chamber of Technology, representing licensed fintech firms in Ghana, rejected these claims, calling them “misleading and potentially damaging to the financial ecosystem.”

The Chamber clarified that fintechs do not directly receive foreign exchange from money transfer operators (MTOs). Instead, banks handle forex inflows, convert them to cedis at regulated exchange rates, and fintechs only facilitate the distribution of funds through mobile money wallets and other digital channels.

“This structure ensures that forex flows remain within the formal banking sector, with banks playing a central role in managing and reporting foreign exchange inflows,” the statement read.

The Chamber further detailed the remittance process, explaining that banks receive and convert forex, mobile money operators facilitate transactions, and fintechs provide the necessary technological infrastructure for efficient transfers.

“Any discussion about remittance flows must, therefore, consider the entire ecosystem rather than focusing solely on fintechs,” the statement emphasised.

Regulatory Oversight Expands

Amid the controversy, the Bank of Ghana has announced plans to broaden its audit of remittance activities, extending scrutiny beyond fintechs to include traditional banks and other financial institutions involved in money transfers. This move aims to ensure a transparent and accountable remittance system that supports national development.

The fintech sector remains firm in its stance, maintaining that it operates within regulatory frameworks and plays a crucial role in facilitating secure and efficient remittance flows.