Naira Appreciates To N869/$1 As Experts Debate Stability
Nigerian banks risk losing their foreign exchange dealership licences for violating directive of the Central Bank of Nigeria (CBN) on diaspora remittances.
In a circular to banks dated December 14, 2022, the central bank said it had been notified that the banks and the International Money Transfer Operators (IMTOs) are collaborating to pay diaspora remittances in Naira.
The central bank had instructed banks and International Money Transfer Operators to pay beneficiaries of diaspora remittances in the exact foreign currency the account holder was paid.
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According to the financial regulator, the directive issued to banks and International Money Transfer Operators in November 2020, has been violated by some banks.
The circular signed by the CBN’s Director, Trade and Exchange Department, Ozoemena Nnaji, stated that through banks, Money Transfer Operators in Nigeria are operating illegal activities by terminating payments in Naira contrary to extant regulations.
CBN said that, “The attention of the CBN has been drawn to the increasing illegal activities by Money Transfer Operators in Nigeria, through banks, by terminating payments in Naira contrary to extant regulations.
“This unwholesome practice has some banks partnering with unlicensed international money transfer operators who disguise their transactions and terminate the same via local inter-bank transfers.
“Henceforth, any bank found to be aiding and abetting any IMTO or unlicensed operator in this activity would be appropriately sanctioned.
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“We also wish to remind all banks that it is their responsibility to not only Know their Customers (KYC requirements) but also Know their customers’ business (KYCB. requirements).
“For the avoidance of doubt, all banks and IMTOs are to pay out proceeds of diaspora remittance only in US Dollars and comply with the guidelines on International Money Transfer Operations published by the Bank.
“Any bank found to be aiding/collaborating with IMTOs in terminating remittances in naira will have their authorised dealership licence withdrawn.”
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