CBN to banks: Close naira accounts of money transfer operators

The Central Bank of Nigeria has ordered banks to close all naira accounts of international money transfer operators.

It gave the directive on Friday in a circular, which it titled, ‘Receipt of diaspora remittances: Additional operational guidelines 2 addressed to all Deposit Money Banks, Payment Service Providers and International Money Transfer Operators’.

It stated, “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.”

The CBN had earlier warned operators against paying recipients of diaspora remittances in local currency.

Violators, it said, could lose their operational licences if they failed to comply with its guidelines on remittances.

The CBN had stated, “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.”