The Central Bank of Nigeria (CBN) has directed switches and
processors to immediately cease all local currency transfers in respect to
foreign remittances to through International Transfer Money Transfer Operators
(IMTO).
The apex bank in a release on Wednesday, said all money
market operators are to immediately disable wallets from receipts of funds from
IMTOs.
The bank said following the recent policy pronouncements on
relaxation of rules on foreign remittances, domiciliary accounts, it noted a
material compliance by majority of market participants as beneficiaries of
remittances through the IMTOs now receive their foreign currency through
designated banks.
It, however, frown at the practice of few operators that continue to pay remittances in local currency contrary to the directive of the CBN.
“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 license, noting that it
remained committed to promoting transparency in the administration of diaspora
remittances into the country.
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