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CBN withdraw banks’ Forex license over diaspora remittances

Yesterday, the Central Bank of Nigeria (CBN) threatened to revoke the foreign exchange dealership licenses of banks that collaborate with International Money Transfer Operators (IMTOs). This was in direct contravention of the CBN’s directive that recipients of diaspora remittances should be paid in the currency of their choosing.

In a bid to support diaspora settlements particularly through the financial framework, the CBN, in November 2020 roundabout to banks, had coordinated that recipients of such settlements ought to be paid in dollars through their preferred assigned banks.

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However, the apex bank noted in a circular to banks yesterday that some IMTOs pay diaspora remittances in Naira, in violation of this directive, through banks.

The roundabout endorsed by the Chief , Exchange and Trade Division, Ozoemena Nnaji, expressed: “The consideration of the CBN has been attracted to the rising criminal operations by Cash Move Administrators in Nigeria, through banks, by ending installments in Naira as opposed to surviving guidelines.

Some banks are partnering with unlicensed international money transfer operators to conceal their transactions and terminate them through local inter-bank transfers, an unsavory practice.

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“From now on, any bank found to be supporting any IMTO or unlicensed operator in this activity would be sanctioned appropriately.”

“We also want to remind all banks that it is their responsibility to know their customers’ businesses (KYCB) in addition to knowing their customers (KYC requirements). requirements).

“All banks and IMTOs are required to pay out proceeds of diaspora remittance only in US dollars and to adhere to the Bank’s guidelines on International Money Transfer Operations.

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“The authorised dealership license of any bank will be revoked if it is determined that they are aiding or collaborating with IMTOs in terminating remittances in naira.”

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