The Central Bank of Nigeria (CBN) has suspended Mobile Money Operators, Payment Switch providers from receiving remittances or integrating their systems with International Money Transfer Operators (IMTOs).
According to a statement released by the Apex bank, it pushed this directive since a few operators have kept paying remittances in local currency instead of the US dollar.
In light of this, the CBN has ordered all payment switches and processors to stop processing any local currency transfers for remittances through IMTOs. It also instructed MMOs to disable their wallets from receiving remittances from IMTOs immediately.
The CBN also demanded that payment services companies should stop integrating their systems with IMTOs and make sure remittances do not get mixed up with other legitimate transactions.
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Nike Popoola
The Central Bank of Nigeria has directed the Deposit Money Banks to close all naira accounts of International Money Transfer Operators.
It disclosed this 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.
The circular was signed by the director, banking supervision department; and director, payments system management department.
The circular 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).
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By Babajide Komolafe
MONEY MAEKET
The Central Bank of Nigeria (CBN) has directed payment switching and processing companies to stop local currency transfer of diaspora remittances received through International Money Transfer Operators (IMTOs), with a threat to revoke licences of defaulting firms.
The apex bank also directed Mobile Money Operators (MMOs) to disable wallets from receipt of funds from IMTOs.
The directives, according to CBN, were to ensure compliance with its recent policy which allows beneficiaries of diaspora remittances to receive the proceeds in foreign currency.
CBN gave these directives in a circular, yesterday, to IMTOs and Payment Service Providers (PSPs) titled, “Receipt of Diaspora Remittances: Additional Operational Guidelines”.
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Temiloluwa O’Peters
The Central Bank of Nigeria has warned that neither Azimo nor Transfer Wise has been licensed by the bank to operate as International Money Transfer Operators.
CBN in a disclaimer posted on its twitter account on Wednesday notified the public that the companies were transacting business, unauthorised as IMTOs in Nigeria and therefore warned potential investors to beware of the companies.
The apex bank advised the public to desist from patronising the schemes, noting that doing so was at the investor’s peril.
The statement said, “The attention of the Central Bank of Nigeria has been drawn to the activities of Messrs Azimo and Messrs Transfer Wise, both of which are purportedly transacting business, albeit unauthorised, as International Money Transfer Operators.