Remittance breach: Xoom, Wise suspend cross-border send-money service to Ghana after BoG warning

Major international money transfer services Wise and Xoom have suspended cross-border transfers to Ghana following regulatory action from the Bank of Ghana (BoG).

The move comes after BoG issued a notice fining and suspending the license of domestic payments firm Zeepay for violations of foreign exchange regulations.

Specifically, Zeepay was penalized for failing to use the average interbank exchange rate when settling international transfers into local currency, as required by BoG rules.

In its notice, the central bank warned all forex market players, including banks, money transfer operators and payment firms, to strictly adhere to applicable regulations.

BoG Secretary Sandra Thompson who signed the statement stated, "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'."

A Wise emailed statement to customers read: "We're working to change this as soon as possible. Please check back here for updates.”

Xoom also notified its users that "Xoom is pausing its cross-border send-money service to Ghana...We appreciate your business and are working to offer this service again in the future.”

The suspensions are a blow for Ghanaian expatriates and migrants abroad looking to send funds home.

For now, Ghanaians relying on international remittances will have to find alternate means until the major money transfer operators resolve issues with the banking regulator.