Non-Compliant Fintechs in Ghana To Lose Licenses soon
The Bank of Ghana will revoke the license of any financial technology company that fails to comply with regulatory requirements outlined in the new payment systems and services bill.
The FinTechs are expected to be compliant at a time where electronic payment systems are increasing significantly.
This caution is also contained in the Bank of Ghana’s 2017 Payment systems report.
The Bank of Ghana explains that the decision to withdraw the licenses is necessary following the potential risks such FinTechs may pose to the financial sector when left unregulated.
Currently, there are seventy-one (71) FinTechs operating in Ghana.
According to the central bank, a FinTech may be deemed qualified to sustain its operations if it complies with three broad directives including; tech, security and controls, governance arrangements as well as principles of consumer protection.
For tech, security and controls, a FinTech is expected to possess a tested technology system which is equipped with fraud monitoring and detection tools; a valid third-party certification from a reputable certification authority in line with relevant standards determined by the Bank of Ghana.
Also, complying with governance arrangements means that the FinTech is required to have a board of directors with a minimum of five members, at least three of whom, including the chief executive officer, shall be resident in the country.
Again, the company must disclose to the Bank of Ghana details of its external auditors and any relation to the directors, key management personnel or shareholders.
Meanwhile, fin techs are expected to be transparent and disclose to their customers, clear, sufficient and timely information on the fundamental benefits, risks and terms of any product or service offered in an objective and accessible form.
Already twenty-one (21) banks are in partnerships with the FinTechs for the provision of services.
The Payment Systems and Services Bill is currently before cabinet. It is expected to be forwarded to Parliament and subsequently passed into law.