Remittance startup LemFi halts operations in Ghana following BoG suspension

Remittance startup LemFi has announced the suspension of all its operations in Ghana. The decision was communicated through a statement released on Tuesday afternoon.

The startup expressed regret in its statement, acknowledging the inconvenience caused to its users. The move comes after the Bank of Ghana, on November 16, 2023, released a list of unapproved money transfer organizations, which included LemFi.

The central bank, in its advisory, explicitly warned both Ghanaians and financial institutions to immediately cease all transactions with the affected companies mentioned in the list. 

Failure to comply with the directive, the bank emphasized, would result in severe sanctions, potentially including the withdrawal of licenses.

Referring to section 3.1 of the Foreign Exchange Act, 2006, the Bank of Ghana emphasized that no entity was authorized to conduct foreign exchange transactions without a valid license granted by the Act. 

This regulatory action aligns with the central bank's commitment to maintaining a regulated and secure financial environment.

LemFi, founded in 2020 by former OPay employees, offered remittance services designed for Africans in the diaspora. The platform allowed users to hold, send, and receive money in at least two currencies - that of their host country and their home country.

Lemonade Finance rebranded to LemFi in May 2023.