To stop International Money Transfer Operators (IMTOs) from paying remittances in local currency, the Central Bank of Nigeria (CBN) will now cease local currency of any defaulting operator.
The apex banks recent policy granted IMTOs unfettered access to forex from Diaspora and other money transfer remittances.
And the policy allows beneficiaries of Diaspora remittances through IMTOs to henceforth receive such inflows in the original foreign currency through the designated bank of their choice.
To prevent breach of the policy by the IMTOs, the CBN in the additional operational guidelines directed switches and processors to immediately, cease all local currency transfers in respect of foreign remittances through IMTOs.
The CBN revealed this in a circular posted on its website yesterday, titled: “Receipt of Diaspora Remittances: Additional Operational Guidelines.”
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All Mobile Money Operators (MMOs) are also required to immediately disable wallets from receipt of funds from IMTOs.
The bank directed payment service providers to cease integrating their systems with IMTOs and must prevent comingling of remittances with other legitimate transactions.
CBN directed, “All IMTOs are required to immediately disclose to beneficiaries that they exercise discretion to receive the 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 (NJBSS) is currently under development to improve visibility of foreign remittance flows.
“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 market.”
The CBN recently unveiled a new policy that grants unfettered access to forex from Diaspora and other money transfer remittances.
The bank said the new regulation was part of efforts to liberalise, simplify and improve the receipt and administration of Diaspora remittances into Nigeria.
The maintained, “These changes are necessary to deepen the foreign exchange market, provide more liquidity and create more transparency in the administration of Diaspora remittances into Nigeria.”