A joint operation by the Cyber Security Authority, in partnership with the Bank of Ghana and the Economic and Organized Crime Office (EOCO) has led to the arrest of over 420 suspected loan app operators.

The authorities raided the premises of some of the suspected operators of online lending apps in Accra.

“The three collaborating institutions launched a swoop in the early hours of Monday, July 10, 2023, as part of a Joint Cybersecurity Committee operation which resulted in the arrest of over 420 suspects”, a statement from the authority mentioned.

According to the Central Bank, the influx of these loan apps is in contravention of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930).

The bank said it had observed the persistent operation of unlicensed entities that are engaged in the provision of loans through mobile applications to the Ghanaian public.

The Bank reiterated that the activities of these entities significantly breach customer data and privacy laws, as well as consumer protection requirements and norms, with unfavourable implications for the integrity and well-being of their patrons.

Bank of Ghana will continue to take action against these entities in collaboration with relevant state agencies to promote the integrity of financial service delivery.

In a statement issued on June 14, 2023, the BoG said, "The general public is therefore advised to desist from doing business with all unlicensed loan providers. Banks, Specialised Deposit-Taking Institutions, and Payment Service Providers are cautioned not to facilitate the illegal transactions of unlicensed loan applications."

SSD/QON

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