December 16, 2020 / 8:12 PM / by CBN / Header Image Credit: Nairametrics
Following the recent policy pronouncements on
amendments to procedures for receipt of diaspora remittances, the Central Bank
of Nigeria (CBN) notes material compliance by 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 the regulatory
directive. The CBN frowns at this practice.
In the light of this, the CBN hereby provides the
following additional operational guidelines:
- Switches and Processors should immediately cease
all local currency transfers in respect of foreign remittances through IMTOs.
- All MMOs are required to immediately disable
wallets from receipt of funds from IMTOs.
- Payment service providers are directed to cease
integrating their systems with IMTOs going forward and must prevent comingling
of remittances with other legitimate transactions.
- All IMTOs are required to immediately disclose to
beneficiaries that they exercise discretion to receive transfer in foreign
currency cash or directly into their domiciliary accounts.
- A central reporting portal for all foreign
remittances to be managed by the Nigerian Interbank Settlement System (NIBSS)
is currently under development to improve visibility of foreign remittance
All licensed institutions are required to comply with
the foregoing guidelines as contraventions will attract stiff regulatory
sanction including revocation of license.
The CBN remains committed to promoting transparency in
the administration of diaspora remittances into Nigeria and will continue to
enforce policies that will stabilize and deepen the Nigeria foreign exchange
* This circular was first published on the website of the Central
Bank of Nigeria on Wednesday, December 16, 2020.
Re-Amends Circular on Procedures for Receipt of Diaspora Remittances
- CBN Amends
Procedures for Receipt of Diaspora Remittances
- CBN Announces Applicable Exchange Rate for the Disbursement of
Proceeds of IMTOs
- Licensing of Interested International Money Transfer Operators
- CBN Licenses New International Money Transfer Operators
- Beware of Unregistered Money Transfer Operators
Related News - CBN
Circulars and Publications
Approves New Licence Categorisations for The Nigerian Payments System
Provides Clarifications on the Operations of Export Proceeds and Ordinary
Clarifies That 'Form M' May Be Processed for Purchases Made Through
Clarifies Destination Payment for All Forms M, Letters of Credit and Other
Forms of Payment
PMI Stands at 50.2% in November 2020 from 49.4% in October 2020
- CBN Issues
Guidelines for the Private Sector-Led Accelerated Agriculture Development
Financial Markets Dept Releases 2019 Activity Report
- CBN Removes
the Restriction on Non-Member Mortgage Lenders from Refinancing
Releases Framework for the Operation of the NIRSAL MfB Window of the N-YIF
PMI Stands at 49.4% in October 2020 From 46.9% in September 2020