CBN Orders Closure Of Money Transfer Operators’ Naira Accounts

The Central Bank of Nigeria (CBN) has instructed deposit money
banks (DMBs) to close all naira accounts of international money
transfer operators (IMTOs).

The directive was contained in a circular released on Friday and
jointly signed by Bello Hassan, CBN’s director of banking
supervision; and Musa Jimoh, the bank’s director of payments system
management.

“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),” the circular read.

“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.”

To deepen foreign exchange liquidity, the CBN had specified that
beneficiaries of diaspora remittances through IMTOs would receive
their proceeds in foreign currency (US dollar) through the bank of
their choice.

Then, they have the option of receiving the funds in foreign
currency cash (US Dollar) or deposited into their domiciliary
account.

In a circular on Wednesday, the apex bank had cautioned IMTOs
who continue to pay remittances in local currency (naira).

It added that violators could lose their operational licences if
they persist in disobeying its directive.

The Central Bank of Nigeria (CBN) has instructed deposit money
banks (DMBs) to close all naira accounts of international money
transfer operators (IMTOs).

The directive was contained in a circular released on Friday and
jointly signed by Bello Hassan, CBN’s director of banking
supervision; and Musa Jimoh, the bank’s director of payments system
management.

“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),” the circular read.

“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.”

To deepen foreign exchange liquidity, the CBN had specified that
beneficiaries of diaspora remittances through IMTOs would receive
their proceeds in foreign currency (US dollar) through the bank of
their choice.

Then, they have the option of receiving the funds in foreign
currency cash (US Dollar) or deposited into their domiciliary
account.

In a circular on Wednesday, the apex bank had cautioned IMTOs
who continue to pay remittances in local currency (naira).

It added that violators could lose their operational licences if
they persist in disobeying its directive.