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By Obinna Chima
The Central Bank of Nigeria (CBN) has expressed displeasure that some International Money Transfer Operators (IMTOs) continue to pay remittances in local currency contrary to its recent policy that granted unfettered access to forex from Diaspora and other money transfer remittances.
However, it noted that the majority of Nigerians who are beneficiaries of remittances through IMTOs now receive forex through their designated banks.
The CBN revealed this in a circular posted on its website yesterday, titled: “Receipt of Diaspora Remittances: Additional Operational Guidelines.”
Therefore, in order to prevent further breach of the policy by the IMTOs, the CBN in the additional operational guidelines directed switches and processors to immediately, cease all local currency transfers in respect of foreign remittances through IMTOs.
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CBN directs payment processors, switches to stop transfer of remittances in local currency
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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).
The apex bank also directed Mobile Money Operators (MMO) to disable wallets from receipt of funds from IMTOs.
The directives according to the CBN were to ensure compliance with its recent policy which allows beneficiaries of diaspora remittances to receive the proceeds in foreign currency.
The CBN gave these directives in a circular to International Money Transfer Operators (IMTOs) and Payment Service Providers (PSPs), titled, “Receipt of Diaspora Remittances: Additional Operational Guidelines”.
The Central Bank of Nigeria (CBN) has issued additional guidelines to prevent operators from paying diaspora remittances in local currency.
The apex bank had in November 2020 announced an amendment for beneficiaries of diaspora remittances through International Money Transfer Operators (IMTOs) to receive such inflows in foreign currency in cash through their designated banks, or into their ordinary domiciliary accounts.
However, the bank noted in a circular on Wednesday, December 16 that, despite material compliance by majority of market participants, a few operators continue to pay remittances in local currency.
To protect the integrity of the regulatory directive, the CBN issued five additional operational guidelines on Wednesday, including a requirement for switches and processors to immediately cease all local currency transfers in respect of foreign remittances through IMTOs.