BusinessDiaspora Remittances: CBN Vows To Sanction Errant Operators

Diaspora Remittances: CBN Vows To Sanction Errant Operators

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BEVERLY HILLS, January 22, (THEWILL) – The Central Bank of Nigeria (CBN) has vowed to sanction international money transfer operators (IMTOs) still paying diaspora remittances in the local currency, Naira.

The bank had in December 2020 directed that IMTOs and commercial banks in the country pay beneficiaries of diaspora remittances in foreign currencies, in a bid to deepen the foreign exchange market and create transparency in the administration of diaspora remittances into Nigeria.

The CBN in a circular on Friday, expressed displeasure over the violation of its earlier directive that beneficiaries be paid in foreign currency that the remittances were made without exchanging the value into Naira.

The circular read in part, “Further to our circular titled ‘Receipt of Diaspora Remittances: Additional Operational Guidelines’, it has come to our notice that some IMTOs and unlicensed companies continue to facilitate diaspora remittances into the country in Naira, in clear contravention of the Central Bank of Nigeria that all remittances be paid to the beneficiaries in dollars.”

Offering further clarifications on the directive, the CBN said that only licensed IMTOs are permitted to carry on the business of facilitating diaspora remittances into Nigeria.

Additionally, beneficiaries must receive all diaspora remittances in foreign currency only (cash and/or transfers to domiciliary accounts of recipients).

“IMTOs are NOT permitted, under any circumstances, to disburse diaspora remittances in Naira (either in cash or by electronic transfers), be it through naira remittance settlement accounts (which had been earlier directed to be closed), third party accounts or via any other payment platforms within and/or around the Nigerian financial system”, the bank said in the circular signed by director, trade and exchange department, Dr O.S. Nnaji.

The CBN warned that strict sanctions, “including withdrawal of operating licenses, shall be imposed on any individuals and/or institutions found to be aiding, abetting, or directly contravening these guidelines.

“For unlicensed operators, the CBN shall not hesitate to authorize the closure of their accounts in Nigerian banks, including being barred from accessing banking services in Nigeria,” the apex bank said.

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Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.

Sam Diala, THEWILLhttps://thewillnews.com
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.

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