The Mobile Money Advocacy Group Ghana (MoMAG) is directing mobile money agents nationwide to halt all cash-out transactions where customers are not physically present, in a move aimed at tightening security and curbing fraud in Ghana’s digital payments ecosystem.
In a statement, the group emphasized that customers must be present at agent points with their mobile devices to initiate withdrawals, in line with standard transaction protocols.
It further maintained that deposits must only be processed when customers present their phones in person, effectively eliminating proxy transactions and reinforcing compliance within the mobile money value chain.
“MoMAG urgently advises all its members and all agents to discontinue the practice of “cash-out” transactions where the customer is not physically present. If a customer wishes to withdraw funds from their wallet, they must come to the agent’s location and present their phone in person, just as they would for any standard transaction.
“We also advise that customers come along with their phones for deposits. No deposit without the phone. Remote or proxy cash-outs, where a customer remains elsewhere while another individual transacts on their behalf, pose significant risks and were identified as a contributing factor to why some agents faced severe penalties during this exercise,” the statement read.
The advisory follows the conclusion of a regulatory exercise by MobileMoney Fintech Limited, which resulted in the termination of more than 900 agent accounts and the suspension of over 100 others for one month.
The sanctions were linked to breaches including unauthorized transaction prompts and attempts to manipulate customers through social engineering schemes.
In addition to the sanctions, more than 8,000 agents were cautioned after engagement with regulators and industry stakeholders, and allowed to continue operations under stricter compliance expectations.
The advocacy group also backed the enforcement measures implemented by the fintech operator, noting that affected agents were given a limited window to access funds in terminated accounts, while due process mechanisms allowed some to contest sanctions.
MoMAG also encouraged mobile money agents who are yet to sign on to the advocacy group to do so, as part of efforts to strengthen industry coordination.
