By Francis Ogwo
All naira accounts of International Money Transfer Operators have been ordered by the Central Bank of Nigeria to be closed by Deposit Money Banks immediately.
This was disclosed by the apex bank on Friday in a circular tilted ‘Receipt of diaspora remittances: Additional operational guidelines 2 addressed to all Deposit Money Banks, Payment Service Providers and International Money Transfer Operators.
Details from the circular signed by the director, banking supervision department; and director, payments system management department read: “DMBs are to close all naira accounts for IMTOs. This is to ensure that diaspora remittances are received by beneficiaries in foreign currency only (cash and/or transfers to domiciliary accounts of recipients).
“DMBs are permitted to open new opex accounts for the purpose of the IMTO operations, such as salary payments and other operating expenses excluding diaspora remittance receipts.
“DMBs must ensure that proper audit of IMTO accounts is done to forestall further use of naira accounts for diaspora remittances purposes.”
Recall that the Central Bank of Nigeria had warned operators against paying recipients of diaspora remittances in local currency in a circular released earlier in which it warned that violators could lose their operational licences if they failed to comply with its guidelines on remittances.
The CBN had stated, “Following the recent policy pronouncement on an amendment to procedures for receipt of diaspora remittances, the CBN notes material compliance by the majority of market participants as beneficiaries of remittances through IMTOs now receive foreign currency through their designated banks.
“However and regrettably, a few operators continue to pay remittances in local currency contrary to regulatory directive. The CBN frowns on this practice.”
Very recently, the Central Bank of Nigeria (CBN) has reviewed the guidelines on international monetary transfer services.
The review, according to the bank, was carried out in order to accommodate inbound as well as the outbound money transfer services that was introduced recently.
The 19-page document titled: ‘Guidelines on International Money Transfer Services in Nigeria, obtained on the CBN’s website yesterday, stated that all inbound money transfer to Nigeria would be disbursed to beneficiaries who operate a bank account, mobile money wallets with the agent or through ATM.
Also, the central bank noted that the maximum allowable cash withdrawals for inbound money transfer shall not be more than $500, adding that any amount in excess of $500 would be paid through an account.
However, where the beneficiary does not have a bank account or mobile money wallet, payments would be made upon the provision of a satisfactory or acceptable means of identifications.
It put the allowable limit of outbound money transfer per transactions at $2,000 or it’s equivalent.
But this is subject to periodic review by the CBN.
