Ghanaian Central Bank Identifies Unauthorized Money Transfer Organizations
The Bank of Ghana (BOG) has identified eight money transfer organizations (MTOs) that are operating in Ghana's remittances and forex markets without its approval. In a notice issued on November 16, the central bank warned the public and regulated financial institutions against having dealings with these unauthorized MTOs.
Violation of Foreign Exchange Act
The notice states that the eight MTOs, namely Lemfi, Wise, Transfer Go, Xoom-A Paypal Service, Sendvalu, Boss Revolution, BTC-AZA Finance, and Supersonicz, are in violation of Section 3.1 of the Foreign Exchange Act, 2006 (Act 723). This law prohibits individuals from engaging in the business of dealing in foreign exchange without a license issued under this Act.
Strict Regulations on Foreign Exchange Movements
Section 15.3 of the same law specifies that any movement of foreign exchange to and from Ghana should be carried out by individuals with the necessary licenses. The Bank of Ghana reminds approved MTOs to conduct their foreign exchange flows exclusively through their partner institutions and to comply with all operational guidelines.
Addressing Foreign Exchange Shortage
Ghana, like many other African countries, has been struggling with a shortage of foreign exchange on the official market. This shortage has put pressure on the local currency's exchange rate against the U.S. dollar and contributed to inflation. In an effort to address this issue, Ghanaian authorities have implemented measures to restrict the influence of the forex parallel market on the economy, including suspending licenses of financial institutions found to be non-compliant.
Penalties Imposed on Unauthorized Institution
In its most recent action against non-compliant institutions, the Bank of Ghana announced on November 20 that it had imposed a fine and suspended the forex license of Zeepay Ghana Limited from November 27, 2023, to December 8, 2023.
These measures are part of ongoing efforts by the Bank of Ghana to regulate the remittances and forex markets, protect consumers, and maintain the stability of the country's financial system.
What are your thoughts on this crackdown by the Bank of Ghana? Let us know in the comments section below.
Frequently Asked Questions
What are some of the advantages and disadvantages to a gold IRA
The main advantage of an Individual Retirement Account (IRA) over a regular savings account is that you don't have to pay taxes on any interest earned. This makes an IRA a great choice for people who are looking to save money but don’t want to pay any tax on the interest earned. There are some disadvantages to this investment.
For example, if you withdraw too much from your IRA once, you could lose all your accumulated funds. Also, the IRS may not allow you to make withdrawals from your IRA until you're 59 1/2 years old. If you do decide to withdraw funds from your IRA, you'll likely need to pay a penalty fee.
You will also need to pay fees for managing your IRA. Many banks charge between 0.5%-2.0% per year. Other providers charge monthly management fees ranging from $10 to $50.
Insurance will be required if you would like to keep your cash out of banks. Most insurers require you to own a minimum amount of gold before making a claim. Some insurers may require you to have insurance that covers losses up $500,000.
If you are considering a Gold IRA, you need to first decide how much of it you would like to use. Some providers restrict the amount you can own in gold. Some providers allow you to choose your weight.
It is also up to you to decide whether you want to purchase physical gold or futures. Physical gold is more expensive than gold futures contracts. Futures contracts offer flexibility for buying gold. They enable you to establish a contract with an expiration date.
Also, you will need to decide on the type of insurance coverage you would like. Standard policies don't cover theft protection, loss due to fire, flood or earthquake. It does offer coverage for natural disasters. You might consider purchasing additional coverage if your area is at high risk.
Additional to your insurance, you will need to consider how much it costs to store your gold. Storage costs are not covered by insurance. For safekeeping, banks typically charge $25-40 per month.
Before you can open a gold IRA you need to contact a qualified Custodian. A custodian maintains track of all your investments and ensures you are in compliance with federal regulations. Custodians don't have the right to sell assets. Instead, they must hold them as long as you request.
Once you have chosen the right type of IRA to suit your needs, it is time to fill out paperwork defining your goals. Information about your investments such as stocks and bonds, mutual fund, or real property should be included in your plan. Also, you should specify how much each month you plan to invest.
Once you have completed the forms, you will need to mail them to your provider with a check and a small deposit. The company will then review your application and mail you a letter of confirmation.
If you are thinking of opening a gold IRA for retirement, a financial professional is a great idea. Financial planners are experts in investing and will help you decide which type of IRA works best for your situation. They can help reduce your expenses by helping you find cheaper alternatives to buying insurance.
How much should precious metals make up your portfolio?
First, let's define precious metals to answer the question. Precious metals refer to elements with a very high value relative other commodities. This makes them very valuable in terms of trading and investment. Today, gold is the most commonly traded precious metal.
However, many other types of precious metals exist, including silver and platinum. The price for gold is subject to fluctuations, but stays relatively stable in times of economic turmoil. It is also unaffected significantly by inflation and Deflation.
All precious metals prices tend to rise with the overall market. They do not always move in the same direction. For instance, gold's price will rise when the economy is weak, while precious metals prices will fall. This is because investors expect lower interest rates, making bonds less attractive investments.
However, when an economy is strong, the reverse effect occurs. Investors favor safe assets like Treasury Bonds, and less precious metals. They are more rare, so they become more expensive and less valuable.
Therefore, to maximize profits from investing in precious metals, you must diversify across multiple precious metals. Because precious metals prices are subject to fluctuations, it is best to invest across multiple precious metal types, rather than focusing on one.
What is a Precious Metal IRA and How Can You Benefit From It?
A precious metal IRA allows for you to diversify your retirement savings in gold, silver, palladium and iridium. These precious metals are extremely rare and valuable. They are great investments for your money, and they can protect you from inflation or economic instability.
Precious metals are often referred to as “bullion.” Bullion refers only to the actual metal.
Bullion can be bought through many channels, including online retailers, large coins dealers, and some grocery shops.
An IRA for precious metals allows you to directly invest in bullion instead of purchasing stock shares. This ensures that you will receive dividends each and every year.
Precious Metal IRAs don’t require paperwork nor have annual fees. Instead, you only pay a small percentage on your gains. Plus, you get free access to your funds whenever you want.
Statistics
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
External Links
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 90 – WSJ
- How do you keep your IRA Gold at Home? It's not legal – WSJ
law.cornell.edu
- 7 U.S. Code SS7 – Designation boards of trade as contract market authorities
- 26 U.S. Code SS 408 – Individual retirement accounts
forbes.com
- Gold IRA, Add Sparkle to Your Retirement Nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
finance.yahoo.com
How To
Gold Roth IRA guidelines
It is best to start saving early for retirement. You should start as soon as you are eligible (usually at age 50) and continue saving throughout your career. It is important to invest enough money each and every year to ensure you get adequate growth.
Also, you want to take advantage tax-free options such as a traditional 401k, SEP IRA or SIMPLE IRA. These savings vehicles enable you to make contributions while not paying any taxes on the earnings, until they are withdrawn. This makes them a great choice for people who don’t have access employer matching funds.
Savings should be done consistently and regularly over time. If you aren't contributing the maximum amount permitted, you could miss out on tax benefits.
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By: Terence Zimwara
Title: The Bank of Ghana Cracks Down on Unauthorized Money Transfer Organizations
Sourced From: news.bitcoin.com/ghanas-central-bank-names-eight-money-transfer-companies-operating-without-its-approval/
Published Date: Thu, 23 Nov 2023 07:00:39 +0000
