In response to Ghana’s central bank cracking down on unlicensed remittance providers, LemFi, a popular fintech startup for remittances in Africa, has halted its services in the country.
Users won’t be able to make transactions to mobile money or banks in Ghana due to this suspension.
LemFi, previously known as Lemonade Finance, was among the eight providers listed by the Bank of Ghana operating without approval. The central bank urged financial institutions to avoid dealing with these unlicensed providers.
Sandra Thompson, the secretary of Ghana’s Central Bank, emphasised compliance with regulations, citing Ghana’s Foreign Exchange Act of 2006.
This act requires a licence for any participation in the forex market and mandates forex transfers to or from Ghana to be conducted through licensed entities.
LemFi, serving users in the US, UK, and Canada for remittances to Ghana, had expressed plans for expansion and product development when it secured a $33 million Series A earlier this year.
The company is known for its strategic approach in acquiring licences and building partnerships with financial institutions for cross-border payments.
The recent crackdown by the Bank of Ghana may impact LemFi’s registration process in the country. However, LemFi assures users that any changes will be communicated promptly.
Related Posts
Educatly plans MENA expansion after banking seed funding
Rubyx secures $440k loan from Proparco
