In a bid to strengthen the oversight of financial transactions and enhance the stability of the foreign exchange market, the Central Bank of Nigeria (CBN) has implemented new regulations, including setting a minimum capital requirement of $1 million for International Money Transfer Operators (IMTOs).

The directive, outlined in the revised guidelines for the operation of IMTOs, aims to bolster the integrity of fund remittance channels and promote transparency in the financial sector.

Dr. Hassan Mahmud, Director of the Trade & Exchange Department at the CBN, officially announced the updated guidelines, which emphasize compliance with anti-money laundering and counter-terrorism financing regulations.

According to the guidelines, IMTO applicants must adhere to stringent documentation requirements, including a non-refundable application fee of N10 million payable to the CBN.

Also, foreign IMTOs are mandated to maintain a minimum share capital of $1 million, while indigenous operators must meet the equivalent requirement in local currency.

The CBN clarified that obtaining an Approval-In-Principle (AIP) does not authorize IMTOs to commence operations; rather, it signifies compliance with preliminary requirements.

Final approval from the CBN is contingent upon submission of additional documentation, including agency agreements with authorized dealer banks and detailed business plans outlining internal control systems and monitoring procedures.

Furthermore, IMTOs are obligated to pay an annual renewal fee of N10 million or an amount specified by the CBN, with renewals due within the first quarter of each year.

These regulatory measures underscore the CBN’s commitment to fostering a robust financial environment and ensuring the integrity of money transfer operations within Nigeria’s financial landscape.