The Bank of Ghana (BoG) has taken decisive action against United Bank for Africa (UBA) Ghana, suspending its foreign exchange trading license for a period of one month, commencing on September 18, 2025. This suspension arises from repeated violations of foreign exchange market regulations by UBA Ghana, specifically breaching the Updated Guidelines for Inward Remittance Services by Payment Service Providers, 2023, as amended by Notice No. BG/GOV/SEC/2025/25. The BoG’s intervention underscores its commitment to maintaining the integrity and stability of the Ghanaian foreign exchange market and serves as a stern warning to all market participants about the consequences of regulatory non-compliance. The central bank’s action aims to deter similar transgressions and reinforce the importance of adherence to established rules and guidelines.
The core of UBA Ghana’s infractions lies in their engagement in unauthorized remittance transactions with several Payment Service Providers (PSPs), including Halges Financial Technologies Limited, Cellulant Limited, and Flutterwave Inc. These transactions were facilitated on behalf of various Money Transfer Operators (MTOs) such as Top Connect, Send App, Taptap Send, Remit Choice, and Afriex. By conducting these transactions outside the regulatory framework, UBA Ghana undermined the BoG’s oversight of the foreign exchange market, potentially jeopardizing its stability and exposing it to risks such as money laundering and illicit financial flows. The BoG’s investigation revealed a pattern of these unauthorized activities, prompting the regulatory action to curb further violations and protect the integrity of the financial system.
The BoG’s suspension, invoked under Section 11(2) of the Foreign Exchange Act, 2006 (Act 723), encompasses a comprehensive cessation of UBA Ghana’s foreign exchange trading activities for the designated one-month period. This effectively bars the bank from participating in any foreign exchange transactions, including buying and selling foreign currencies, during the suspension. Furthermore, as a direct consequence of the unauthorized transactions, the BoG has mandated the suspension of all remittance partnerships between UBA Ghana and Designated Electronic Money Issuers (DEMIs), PSPs, and MTOs. This comprehensive approach aims to isolate UBA Ghana from the remittance ecosystem, preventing further unauthorized activities and allowing for a thorough review of their compliance framework.
The suspension and the associated restrictions have significant operational implications for UBA Ghana. The inability to engage in foreign exchange trading will likely disrupt its international transactions and services, impacting its customers who rely on these services for cross-border payments and remittances. The suspension of remittance partnerships further restricts the bank’s ability to facilitate international money transfers, creating further inconvenience for customers. This underscores the gravity of the regulatory action and the potential financial and reputational consequences for UBA Ghana.
Beyond the immediate suspension, the BoG has outlined specific conditions for the resumption of remittance partnerships involving UBA Ghana. Following the one-month suspension period, any DEMI, PSP, or MTO seeking to renew or establish a remittance partnership with UBA Ghana will be required to obtain fresh approval from the BoG. This requirement signifies the central bank’s intent to closely scrutinize UBA Ghana’s compliance framework and operations before allowing them to re-engage in remittance activities. This ensures that the bank demonstrates a commitment to adhering to regulatory requirements before being reintegrated into the foreign exchange market.
The BoG’s action against UBA Ghana serves as a clear and decisive message to all participants in the foreign exchange market. The central bank has reiterated its commitment to enforcing regulatory compliance and emphasizes the importance of strict adherence to all regulations and guidelines governing foreign exchange transactions. This underlines the BoG’s proactive stance in safeguarding the stability and integrity of the Ghanaian financial system and underscores the potential consequences for institutions that fail to comply with established rules. The incident serves as a potent reminder of the importance of robust compliance frameworks and ethical conduct within the financial sector, preventing regulatory breaches and maintaining public trust.
