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The Bank of Ghana has warned the public against dealing with some 97 unlicensed entities that advance loans to prospective clients through mobile apps.
The central bank said in a statement that further to its notice number BG/GOV/SEC/2022/10 on Unlicensed Entities Engaged in Lending, it has observed the “persistent operation of unlicensed entities that are engaged in the provision of loans through mobile applications to the Ghanaian public, in contravention of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930)”.
The bank reiterated that the activities of these entities significantly breach customer data and privacy laws, as well as consumer protection requirements and norms, with unfavorable implications on the integrity and wellbeing of their patrons.
The Bank of Ghana said it will continue to take action against these entities in collaboration with relevant state agencies to promote the integrity of financial service delivery.
“The general public is, therefore, dvised to desist from doing business with all unlicensed loan providers”, BoG warned, adding: “Banks, Specialised Deposit-Taking Institutions and Payment Service Providers are cautioned not to facilitate the illegal transactions of unlicensed loan applications”.
The central bank also encouraged the public to patronize the various types of digital credit products approved by Bank of Ghana and delivered by banks and specialized deposit-taking institutions in partnership with mobile money operators.
These loan facilities are accessed remotely 24/7 through mobile money wallets without the need for collateral, the central bank said.
Story by Naa Anyema Collison – Business Desk
