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Banks and fintechs in Nigeria are now prohibited from providing international money transfer services, according to the updated guidelines for International Money Transfer Operators (IMTOs) released by the Central Bank of Nigeria (CBN).
The recent guidelines aim to provide direction to IMTOs in compliance with the regulatory framework established by the CBN. While the previous guidelines in 2014 only applied to deposit money banks, the new rules now include fintechs. What the circular says: “All banks are prohibited from operating International Money Transfer services but can act as agents. Also, Financial Technology Companies are not allowed to obtain approval for IMTO,”“The provisions of BOFIA 2020 on the prohibition of employment of certain persons in banks shall also apply to IMTOS.”
“In line with BOFAI 2020, all the conditions stipulating the exclusion for certain individuals from the management of banks shall apply to the management of International Money Transfers Services”
To get final approval, the central bank said any IMTO wishing to operate in Nigeria must submit its application to the Director of the Trade and Exchange Department. Additionally, the IMTO must submit approval to operate in other jurisdictions or agency agreements, evidence of tax clearance and incorporation documents in Nigeria. — Business Insider Africa
Bongani Ndlovu
Online Reporter