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The Importance of Risk Management in International Fund Transferring To Ghana

24 Jul 2023


Are you one of Ghanaian expatriates struggling to find a reliable and convenient way to send money to Ghana? Whether you are supporting family members, investing in business opportunities, or contributing to community development, understanding the risks involved is crucial for successful transactions.

Transferring funds to Ghana, a booming West African country, requires a solid awareness of the significance of risk management. In this blog, we will look at the importance of risk management in sending remittances to Ghana and the specific hurdles that should be overcome to streamline the process.

Risks Involved in Remittance Flows to Ghana

Informal Channels and Lack of Transparency

It is predicted that remittances delivered through informal channels might raise total flows by up to 50% if supervised.

Remittances to Ghana are frequently subjected to risks associated with informal routes and a lack of transparency. Informal remittance channels are utilised because they are convenient or less expensive, but they also expose senders and recipients to a variety of dangers.

These channels operate outside of conventional legal frameworks, making tracing transactions and ensuring compliance with anti-money laundering (AML) and counter-terrorism funding (CTF) legislation challenging. The lack of transparency also makes finances more vulnerable to theft, fraud, and other illegal actions.

Limited Access to Formal Financial Services 

Access to formal financial services remains a challenge for many individuals and communities, especially in rural areas. Due to limited access to banks and regulated financial institutions, informal remittance channels are used, increasing the dangers involved. Inadequate documentation and control in informal channels might expose remittance flows to potential fraud, fund loss, and difficulty in dispute resolution.

Exchange Rate Fluctuations and Currency Conversion Risks

Ghana's currency, the Ghanaian Cedi (GHS), fluctuates in value against major international currencies such as the US dollar, euro, and pound sterling. These exchange rate fluctuations can have a considerable impact on the value of remittances received by recipients.

Currency conversion risks thrive when you send money to Ghana in a foreign currency which is converted to the local currency. Exchange rate fluctuations might cause differences in the ultimate amount received by the beneficiary, undermining their financial stability.

Security and Fraud Risks

Remittances to Ghana are subject to security concerns such as fraud, identity theft, and cybercrime. To acquire unauthorised access to funds, criminals attempt to intercept remittance transactions or impersonate senders or recipients.

Online scams, phishing attacks, and other fraudulent activity put remittance transfers at risk. To reduce the risks of financial loss and unauthorised access to sensitive information, senders and recipients should implement strong security measures and choose trusted service providers.

Managing Risks in Remittance Flows to Ghana

Formalising Remittance Routes

Efforts should be undertaken in Ghana to encourage the formalisation of remittance routes. Encouraging individuals and communities to use official financial services, such as banks and licenced money transfer providers, can improve transparency, regulatory compliance, and consumer protection.

Government actions and collaborations with financial institutions can be useful in increasing access to formal channels.

Strengthened Regulatory Frameworks

Ghanaian authorities should continue to tighten regulatory frameworks managing remittance flows. Implementing and executing AML and CTF requirements to combat money laundering, terrorist funding, and other illegal actions is part of this.

Improved regulation and supervision of remittance service providers will increase transparency, safeguard consumer rights, and reduce the dangers associated with informal channels.

Collaboration with Technology Providers

Adopting technological solutions can improve the security and efficiency of remittances to Ghana. Collaboration with technology providers can result in the creation of secure web platforms, mobile applications, and digital wallets that give greater security and convenience to senders and recipients. Strong encryption, two-factor authentication, and real-time transaction monitoring can all help to reduce the security and fraud concerns associated with every online money transfer to Ghana.

Promoting Financial Inclusion

Efforts should be undertaken to enhance financial inclusion in Ghana to offset the risks associated with inadequate access to formal financial services. This includes broadening the availability of banking services, making it easier to create banking agents in remote locations, and promoting digital financial solutions.

More people will be able to send and receive remittances through formal channels as financial literacy improves and financial services become more accessible.

ACE Money Transfer Empowering Secure and Reliable Remittance Flows to Ghana

ACE Money Transfer, a prominent provider of international money transfer services, is a key player in enabling secure and reliable remittance flows to Ghana. ACE Money Transfer assures that senders and recipients can confidently transfer funds to Ghana by committing to compliance, reasonable currency rates, and comprehensive security measures.

Compliance with international and local supervisory regulations is important to the operations of ACE Money Transfer. ACE Money Transfer maintains the highest levels of integrity and safeguards against illegal activity by employing strong Anti-Money Laundering (AML) protocols. This emphasis on compliance instils trust and confidence in clients, assuring them that their transactions are legal and transparent.

ACE Money Transfer also takes pride in providing competitive exchange rates, continuously monitoring market developments to ensure that senders receive the best available rates. ACE Money Transfer maximises the value of remittances, allowing beneficiaries in Ghana to receive money that retains its intended value, boosting their financial stability and contributing to the country's economic progress.

ACE also safeguards sensitive financial information from unauthorised access and fraudulent activity through advanced encryption methods, multi-factor authentication, and a real-time transaction monitoring system.

Learn more on how you can transfer funds to Ghana frequently with ease and convenience.

With these policies intact, Ghana is making its way to the list of highest remittance-receiving countries in the world. Sign up on the ACE app and enjoy your free money transfer to Ghana.


FAQS

How long does it generally take for the funds to reach the beneficiary in Ghana?

The amount of time it takes for the recipient to receive the funds depends on several factors, including the transfer method and the service provider. It can take anywhere from a few minutes to a few business days depending on the provider.

Can I cancel or change a remittance transfer to Ghana after it has begun?

It may be impossible to cancel or change a remittance transfer once it has been initiated. To avoid any trouble, it is important to double-check all of the facts before finalising the transfer.

Are there any additional services offered by ACE Money Transfer for remittance transfers to Ghana?

ACE Money Transfer provides additional services such as cash pickup locations and mobile wallet transfers, offering flexibility for recipients in Ghana to access their funds conveniently.

Are there any transaction limits on remittances to Ghana?

Yes, transaction restrictions may be imposed by regulatory bodies and service providers.

Can I check the status of my remittance to Ghana?

Yes, ACE Money Transfer offers a tracking tool that allows you to track the status of your transfer online or via their mobile app.


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