Home Business Matters Business & Economy Deposit Money Banks To Close International Money Transfer Operators Naira Account

Deposit Money Banks To Close International Money Transfer Operators Naira Account

2010

The Central Bank of Nigeria has given directives to Deposit Money Banks to close International Money Transfer Operators’ naira account.

CBN
CBN

This was stated in a circular recently released by the Apex bank, wherein operational guidelines in respect of ‘Receipt of diaspora remittances’, was given to all Deposit Money Banks.

The circular which was signed by the director, banking supervision department; and director, payments system management department; stated that Deposit Money Banks are to close all naira accounts for International Money Transfer Operators.

This is coming after a circular earlier released mandating beneficiaries of diaspora remittances to be received in foreign currency.

The circular read in part that “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”.

In the recently released circular CBN, noted that some operators are still yet to comply with the guidelines, even though majority of market participants have complied “However and regrettably, a few operators continue to pay remittances in local currency contrary to regulatory directive. The CBN frowns on this practice.”

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