The Central Bank of Nigeria on Friday threatened to revoke the license of any International Money Transfer Operators that violates its new policy on Diaspora remittances.
The bank had last month said that payments of all Diaspora remittances to beneficiaries must be in dollars and other foreign currencies and not Naira.
In a circular issued on Friday to all authorized dealers and IMTOs signed by the CBN Director of Trade and Exchange Department, O.S Nnaji, the apex bank warned of dire consequences against the continued contravention of its directives by operators.
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The CBN warned that any individuals or institutions found to be aiding, abetting or directly contravening these guidelines and paying beneficiaries of Diaspora remittances in local currencies would face stiff sanctions.
The sanctions include withdrawal of operating licenses, closure of culprit’s accounts in Nigerian banks, including barring them from accessing banking services in Nigeria.
The CBN said it would not hesitate to authorize the closure of the accounts of any unlicensed operators in Nigerian banks, including barring them from accessing banking services in Nigeria. if found to be contravening these directives.
In the circular titled: “Modalities for Payout of Diaspora Remittances”, the CBN made reference to a previous circular on additional guidelines it issued on the receipt of Diaspora remittances by beneficiaries.
The apex bank said in contravention of its directive that all remittances to beneficiaries be paid in dollars or foreign currencies, some IMTOs and unlicensed operators have continued to facilitate diaspora remittances into the country in Naira.
The CBN clarified that apart from the point that only licensed IMTOs are permitted to facilitate Diaspora remittances into Nigeria, all Diaspora remittances must be received by beneficiaries in foreign currency only, either in cash and/or transfers to domiciliary accounts of the recipients.
“IMTOs are not permitted under any circumstances to disburse Diaspora remittances in Naira (either in cash or by electronic transfers) be it through Naira remittance settlement account (which had been earlier directed to be closed), third party accounts, or via any other payment platforms within an/or around the Nigerian financial system,
“These measures are intended to promote transparency, grow Diaspora remittances and significantly improve foreign exchange inflows into Nigeria.
“Strict sanctions, including withdrawal of operating licenses shall be imposed on any individuals and institutions found to be aiding, abetting or directly contravening these guidelines.”
The CBN Governor, Godwin Emefiele, had last month said the new measure was designed to boost and facilitate an efficient flow of remittances sent home by Nigerians in the Diaspora.
The annual remittance inflow from Nigerians in the Diaspora is put at about $24bn, which could significantly help in improving the country’s balance of payment position, reduce its dependence on external borrowing and mitigate the impact of COVID-19 on foreign exchange inflows.