CBN threatens embargo over repeated disregard for rules on disapora remittances

CBN threatens embargo over repeated disregard for rules on disapora remittances

The CBN has expressed displeasure over continued diaspora remittances into the country in Naira, instead of dollars, by International Money Transfer Operators (IMTOs) and unlicensed companies, contrary to its directives.

Dr O.S. Nnaji, Director Trade, and Exchange Department of CBN said in a circular, on Friday, January 22, that the action contravened the apex bank’s directive that all remittances be paid to beneficiaries in dollars.

The circular, entitled, “Modalities For Payout of Diaspora Remittances”, was posted on the CBN website on Friday.

”Further to our circular titled” Receipt of Diaspora Remittances: Additional Operational Guidelines “, it has come to our notice that some IMTOs and unlicensed companies continue to facilitate diaspora remittances into the country in Naira, “in clear contravention of the Central Bank of Nigeria directive that all remittances be paid to beneficiaries in dollars,” it said.

Also Read: Islamic NGO implores Buhari to release Zakzaky, wife after positive COVID-19 diagnosis

The circular clarified that only licensed IMTOs were permitted to carry on the business of facilitating Diaspora remittances into Nigeria; stressing that all diaspora remittances must be received by beneficiaries in foreign currency only; whether via cash and/or transfers to domiciliary accounts of recipients.

The CBN said: “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 accounts; which had been directed to closed, third party accounts; or via any other payment platforms within and/or around the Nigeran financial system.”

It said that the measures were intended to promote transparency; grow diaspora remittances; as well as significantly improve foreign exchange inflows into Nigeria.

The bank said that strict sanctions, including withdrawal of operating licenses; shall be imposed on any individuals and/or institutions found to be aiding; abetting; or directly contravening these guidelines.

For unlicensed operators, the CBN said it shall not hesitate to authorize the closure of their accounts in Nigerian banks; also being barred from accessing banking services in Nigeria.

It likewise promised continued monitoring of developments in this regard; adding that it would also issue further guidance as appropriate.

About The Author

A writer with a keen interest in human stories and topical issues around the world. [email protected]

Related posts

Leave a Reply

Your email address will not be published. Required fields are marked *