BoG vows crackdown on illegal lending Apps

The Bank of Ghana (BoG) has reaffirmed its commitment to cracking down on illegal lending apps that engage in unethical practices, including threatening loan defaulters with the publication of their photos and confidential information. The central bank emphasized that such actions are criminal and have no place in Ghana’s financial sector.

This growing trend has led to severe consequences, with reports of some defaulters resorting to suicide under pressure from these unscrupulous lenders.

Speaking at the MTN Ghana Mobile Money @15 Fintech Stakeholders’ Forum, Kwame Oppong, Director of Fintech at the BoG, issued a stern warning that the central bank will not tolerate unauthorized financial products that threaten the stability of the financial sector or compromise the integrity of the economy.

“Nothing should be introduced in this country that causes instability in the financial sector and somehow puts the integrity of the economy at risk. Secondly, nothing should come into the country that somehow jeopardizes the livelihoods of individuals and businesses,” Oppong stated.

He condemned the practice of using threats and public shaming to recover loans, calling it “unthinkable” and questioning the morality of such methods. “How is this a way of making a living—putting people on suicide watch by threatening to announce to the world that they owe you?” he questioned.

Oppong urged the public to exercise caution in their online financial transactions and assured that the BoG is working closely with the Economic and Organised Crime Office (EOCO) and other security agencies to apprehend and prosecute those responsible. He recalled a recent operation that resulted in the arrest of over 200 individuals, including foreigners, involved in these illegal activities.

At the same event, Shaibu Haruna, Chief Executive of Mobile Money Limited, highlighted MTN’s ongoing efforts to implement safety measures and enhance education on mobile money fraud to build trust among customers. The MTN Mobile Money @15 Fintech Stakeholders’ Forum, held under the theme “Building Trust and Cooperation Among Stakeholders: How to Maximize the Impact of Emerging Technologies for the Promotion of Financial Inclusion,” brought together key players in the financial technology space to discuss the impact of emerging technologies and the importance of strong regulations to foster trust among users and stakeholders.