Bank of Ghana applauded for launching Crowdfunding Policy

A Finance Compliance Consultant, Richeison Gyeni-Boateng has applauded the Bank of Ghana (BoG) for introducing into the country’s fintech space the Crowdfunding Policy to guide banks.

The new policy which was launched in February this year among other things is to promote innovative digital crowdfunding solutions that comply with data protection and customer privacy regulations, good governance and accountability, relevant Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) norms, liquidation procedures, and protection of contributors’ interest.

According to the central bank crowdfunding services hold the potential for deepening financial intermediation and improving financial inclusion following the high patronage of digital crowdfunding services observed among associations and corporate entities in order to raise money to fund development and humanitarian projects in the country.

“As a result, it must be provided with a conducive regulatory environment for orderly development,” it said.

But in a brief interview with BizTech Africa, Mr. Gyeni-Boateng noted that although the policy failed to address issues with regards to anonymity of people behind the crowdfunding, its stated purpose, monitoring, and intended purpose of the fund, the idea behind the policy is a step in the right direction to make crowdfunding unattractive to criminals.

He explained that the move by the central bank to set requirements for Electronic Money Issuers (DEMIs), Enhanced Payment Service Providers (EPSP) and Mobile Money wallets (MoMo), which is a product or a service of the DEMI and EPSP, and it’s also widely used for the collection of funds for crowdfunding purposes especially the Donation-based is a boost for the industry.

“Also setting a maximum limit for the amount of money that can be collected onto merchant MoMo wallet in Ghana will go a long way in the fight against criminals in the crowdfunding industry. Per the BoG policy on crowdfunding, merchant wallets created for crowdfunding shall be subjected to regular monitoring and reporting to ensure compliance of use with the intended purpose. The policy has prescribed the maximum transaction limits for various categories of merchant wallets,” he added.