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Banks to pay Dollars while IMTOs and other diaspora Remittances will now pay in Naira – CBN

A photograph of the CBN Governor, Olayemi Cardoso speaking at an event.

On February 13, 2024, the Central Bank of Nigeria implemented Stricter Guidelines for International Money Transfer Services.

Introduction:

The Central Bank of Nigeria (CBN) has restricted the operations of international money transfer operators (IMTOs) to only inbound transfers, halting outbound transfers. In addition to this, these inbound transfers can only be paid out in Naira.

Key Revisions to IMTO Policy

  1. Payment Protocols: Effective immediately, all inbound money transfers to Nigeria must be disbursed exclusively in Naira through either bank accounts or cash transactions. This directive, mandated by the CBN, aims to streamline remittance processes while aligning with regulatory standards.
  2. Compliance Imperatives: The updated guidelines set forth stringent requirements for International Money Transfer Operators (IMTOs), encompassing documentation, operational procedures, and anti-money laundering protocols. IMTOs are tasked with maintaining meticulous records, conducting thorough due diligence, and promptly addressing compliance issues.
  3. Regulatory Vigilance: The CBN underscores its commitment to rigorous oversight and enforcement mechanisms to uphold the integrity of the remittance ecosystem. IMTOs found in violation of regulatory provisions may face sanctions ranging from financial penalties to suspension or revocation of operating licenses.

Impact on Consumers and App Users:

  • Transparent Transactions: Consumers can expect greater clarity regarding exchange rates, transaction fees, and other charges associated with money transfers. IMTOs are obligated to disclose all costs upfront, fostering transparency and empowering consumers to make informed decisions.
  • Efficient Dispute Resolution: The guidelines mandate IMTOs to establish dedicated complaints resolution units to swiftly address customer concerns. This proactive approach aims to expedite the resolution process and enhance overall customer satisfaction.
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SEE ALSO: DOM transfers and Dollar withdrawals No Longer Available on Wirepay and other IMTOs in Nigeria

FAQ: Frequently Asked Questions

How will these changes affect my international money transfers?

The new guidelines mandate that all inbound transfers to Nigeria must be disbursed in Naira, either through bank accounts or cash transactions. This ensures compliance with regulatory directives and may streamline the transfer process.

Will these changes impact the fees associated with money transfers?

IMTOs are required to provide transparent disclosure of all fees and charges to consumers. Any discrepancies or inappropriate charges should be promptly addressed and refunded as per the guidelines.

What recourse do I have if I encounter issues with a money transfer?

IMTOs are obligated to acknowledge and resolve customer complaints promptly. Consumers can escalate unresolved concerns to the CBN’s Consumer Protection Department for further assistance.

In Conclusion:

The Central Bank of Nigeria’s revised guidelines for International Money Transfer Services underscore its commitment to promoting integrity, transparency, and consumer protection within the remittance sector. By enforcing these measures, authorities aim to fortify the financial system while safeguarding the interests of all stakeholders.

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