CBN issues additional guidelines on foreign currency remittance

 

Further to earlier directive on receipt of diaspora remittances and operational guidelines, especially concerning domiciliary accounts, the Central Bank of Nigeria (CBN) has directed banks in Nigeria to close all Naira accounts of International Money Transfer Operators (IMTO).

This, according to a circular issued by the CBN to all banks, payment service providers and IMTOs, on Friday, is to ensure that all diaspora remittances are received by beneficiaries in foreign currency – cash and/or transfers to domiciliary accounts of recipients – only.

The circular, titled, ‘Receipt of Diaspora Remittances: Additional Operational Guidelines 2’, signed by directors, Banking Supervision and Payment System Management, permits banks to open new Operational Expense (OpEx) accounts for the purposes of the IMTO operations, such as salary payments and operating expenses, excluding diaspora remittances receipts.

READ: CBN announces new policy on Diaspora remittances

Also, the CBN instructed that banks “must ensure that proper audit of IMTO accounts is done to forestall further use of Naira accounts for diaspora remittance purpose.”

The apex bank said the directives take immediate effect, while urging all affected financial institutions to ensure strict compliance.