Central Bank of Nigeria Orders Closure of all International Money Transfer Operators’ Naira Accounts

In an effort to ensure that all Deposit Money Banks adhere to the latest directive of the Central Bank of Nigeria on remittance inflows, the central bank has ordered all naira accounts of International Money Transfer Operators (IMTOs) closed.

The apex bank disclosed this in a circular titled ‘Receipt of diaspora remittances: Additional operational guidelines 2 addressed to all Deposit Money Banks, Payment Service Providers and International Money Transfer Operators’ issued on Friday.

The circular reads in part, “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).

“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.”

In an earlier circular, the central bank warned operators still paying recipients of foreign inflows in Naira to desist and warned that they could lose their licences if they failed to comply with the latest diaspora remittances.

The apex bank had said, “Following the recent policy pronouncement on amendment to procedures for receipt of diaspora remittances, the 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 regulatory directive. The CBN frowns on this practice.”