The Central Bank of Nigeria (CBN) has ordered payment processors to immediately cease all local currency transfers in respect to foreign remittances received through International Transfer Money Transfer Operators (IMTO).
In a press statement, the CBN said all money market operators are to immediately disable wallets from receipts of funds from IMTOs.
The banker of last resort, said following the recent policy pronouncements on relaxation of rules on foreign remittances, domiciliary accounts, it observed a material compliance by majority of market participants as beneficiaries of remittances through the IMTOs now receive their foreign currency through designated banks.
“Payment service providers are directed to cease integrating their systems with IMTOs going forward and must prevent comingling of remittances with other legitimate transactions,” the statement said.
“All IMTOs are required to immediately disclose to beneficiaries that they exercise discretion to receive 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 (NIBSS) is currently under development to improve visibility of foreign remittances flows.”
The CBN directed that all licensed institutions to comply with the new guidelines of diaspora remittances, as contravention will attract stiff regulatory sanctions including revocation of licenses, noting that it remained committed to promoting transparency in the administration of diaspora remittances.