CBN Threatens To Revoke License, As Operators Defy Remittance Directive

Operators involved in the exchange of foreign currencies for International Money Transfer Operators (IMTOs) have continued to defy the directive by the Central Bank of Nigeria (CBN) regarding foreign remittance into accounts of beneficiaries.

AllNews had reported that the CBN directed foreign remittances shouldn't be changed into naira, in order for receivers or account holders to take possession of their money at the actual value of the currency, stating that the beneficiaries can go on to exchange the foreign currency at the Bank or other authorised exchange dealers.

The directive was given to International Money Transfer Operators in order to boost foreign remittances, but some switches and processors - exchange companies - have continued to exchange foreign remittances to naira before IMTOs transfer the cash to account holders.

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CBN stated that if the exchange operators don't cease changing foreign remittances into naira, it will revoke licenses of IMTOs. The operators have integrated their systems into IMTOs, hence, the exchange of foreign remittances.

"Payment service providers are directed to cease integrating their systems with IMTOs going forward and must prevent comingling of remittances with other legitimate transactions.

“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,” CBN said in a statement.